HomeMy WebLinkAboutEDA AGN 10-23-07
AGENDA
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
October 23, 2007
IMMEDIATELY FOLLOWING THE 7:00 PM HRA MEETING, Parkview Villa, 965 40th
Ave., Community Room B
1. Call to Order/Roll Call
Gary L. Peterson, President
Bruce Kelzenberg, Secretary/Treasurer
Tammera Diehm
Bruce Nawrocki
Bobby Williams
Vice President-position open
2. Pledge of Allegiance
CONSENT AGENDA
3. Approve Minutes of August 27th and 28th of 2007.
Approve financial report and payment of bills for August and September 2007,
Res. 2007-23.
Motion: Move to Approve the minutes and Resolution 2007-23, approving the
Financial Report and payment of bills for the months of August and September,
2007.
BUSINESS ITEMS
4. Res. 2007-24, Assignment and Assumption: Grand Central Lofts,
Commercial Improvements
Motion: Move to Adopt Resolution 2007-24, a Resolution Approving Assignment and
Assumption Agreement transferring certain rights and obligations in the contract for
private redevelopment between the Columbia Heights Economic Development
Authority and Grand Central Properties, LLC to Grand Central Commons; and
furthermore, to authorize the President and Executive Director to enter into an
agreement for the same.
5. Preliminary Development Agreement for the Burger Redevelopment Site
Motion: Move to Approve the Preliminary Development Agreement between the Tom
Frattalone and the EDA; and furthermore, to authorize the President and Executive
Director to enter into an agreement for the same.
6. Preliminary Development Agreement for the Beecroft Redevelopment Site
Motion: Move to Approve the Preliminary Development Agreement between
C.R.O.S. Companies LLC and the EDA for the Beecroft Redevelopment Site; and
furthermore, to authorize the President and Executive Director to enter into an
agreement for the same.
7. Demolition of Beecroft Building at 3710 Central
Motion: Move to Approve the low quote for demolition of the Beecroft building at
3710 Central Avenue from Frattalone Inc. in an amount not t exceed $23,600.
8. Industrial Park Groundwater Investigation Report of Contaminated Soil
Motion: Move to Approve the ProSource Industrial Park Groundwater Investigation Report
of contaminated soil scope of work and contract, not to exceed $84,748 and furthermore, to
authorize the President and Executive Director to enter into an agreement for the same.
9. Resolution 2007 -21, and 2007 -22, 2008 Budget and Levy
Motion: Move to Adopt Resolution 2007-21, being a Resolution of the Columbia
Heights EDA Adopting the 2008 Budget of $274,863 and a levy of $78,622 and
recommending approval of the same to the City Council.
Motion: Move to Adopt Resolution 2007-22, being a Resolution of the Columbia
Heights EDA approving a special benefit of $196,241 and recommending approval
of the same to the City Council.
10. Acquisition of 3805 2nd Street
Motion: Move to authorize staff to negotiate a purchase agreement with the owners
of 3805 2nd Street NE for a total price, including closing costs and outstanding
assessments, not to exceed $105,000.
11. Adjournment
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
SPECIAL MEETING MINUTES
August 27,2007
CALL TO ORDERIROLL CALL
President, Gary L. Peterson called the meeting to order at 6:30 p.m.
Present: Gary L. Peterson, Bruce Nawrocki, Tammera Diehm, Marlaine Szurek and
Bruce Kelzenberg. Williams arrived at 6:44pm.
Absent: Patricia Jindra
PLEDGE OF ALLEGIANCE
BUSINESS ITEMS
Adopt Resolution 2007-20, Awardinq the Sale of Public Facilitv Lease Revenue
Bonds, Series 2007B
Walt Fehst stated the bids were opened this morning and would like to turn this over to
Mark Ruff.
Mark Ruff, Ehlers & Associates passed out one more document to the board which
contained: 1) results of the bids, 2) the Moody's Investors Service report for the bond
issue; 3) payment schedules based on the bids and 4) is an overview of the market and
how this bond issue compares to the market.
The lowest bid was from Stifel, Nicolaus with a true interest rate, which combines the
coupon rates and the fees at a 4.9589 percent. The second bid was from Northland
Securities with 20 basis points or less than a quarter percent higher. We are very
happy with the rate we received from Stifel, Nicolaus, which was based on a Moody's
rating of 83 and is the rating we expected. It is just two notches below our cities general
obligation A-1 rating. This is typical for something that is not a City Hall or a Public
Works Facility. These are 20-year bonds.
Fehst stated if you look the 4.959, compared to 4.96, we are less than three one
hundreds percent or eleven ten thousands percent off of what the average is for a G. O.
bond throughout the country. Ruff stated that is correct. Nawrocki asked if they only
received the two bids. Ruff stated that was correct.
Nawrocki stated he looked over the preliminary official statements sent out previously to
him. The one for the Liquor Store he found interesting as they indicated we had
revenues in 2005 of $367, 000 profits, 2006 we had $380,000 and on the document for
the million dollar issue you indicate the profitability for 2005 was $222,000 and 2006 it
was $224,000. On the statement from the audit conducted for 2006 it indicates profits
of $202, 000 and 2005 of $200, 000. Where are you getting all of these different profit
numbers?
Ruff stated he wasn't sure which numbers Mr. Nawrocki was referring to that vary
substantially. The purposes in the two different official statements was in an effort to
say, if the Liquor Stores didn't lease property, how much money would be available to
pay debt service.
Economic Development Authority Special Meeting Minutes
August 27, 2007
Page 2 01'2
Motion by Diehm, second by Williams, to Adopt Resolution 2007-20, a Resolution
Awarding the Sale of $5,040,000 in Public Facility Lease Revenue Bonds, Series
2007B (Municipal Liquor Stores Project), and its related documents; and furthermore, to
authorize the President and Executive Director to enter into an agreement for the same.
Andrew Pratt, Kennedy & Graven stated one of the major aspects of the Lease
Purchase Agreement is that the EDA will be leasing the land and the facility to the City.
The City would pay lease payments on it, which would intern be used to pay the debt
service off. Section 5.6 of the Lease Purchase Agreement, talks about the Cities
powers in any fiscal year not appropriating funds to pay the lease. In case that ever
does happen, in section 3.02 references that the authority would have to find another
tenant to payoff the bonds. That is one of the risks of the lease revenue bond. In this
case we have the trustee being the EDA.
Nawrocki stated in the debt service schedule you aren't paying anything but principal
the 1st so many years and farther down the road we will end up making payments that
will far exceed our expectations. Therefore, he wanted the record to show he would not
be voting in favor of this item.
Upon Vote: Williams-aye, Nawrocki-Nay, Kelzenberg-aye, Diehm-aye, Szurek-aye,
Peterson-aye. Motion Carried.
Peterson stated he received word today that Commissioner Jindra will be resigning
from the EDA due to health issues. We wish her well. As board members he wanted
everyone to think if they new of anyone they think would be a good candidate to fill her
position and bring to bring that persons name to the meeting tomorrow night.
ADJOURNMENT
President, Peterson, adjourned the meeting at 6:58 p.m.
Respectfully submitted,
Cheryl Bakken
Community Development Secretary
H :\EDAminutes2007\8-27 -2007 Special Mtg
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
REGULAR MEETING MINUTES
August 28, 2007
CALL TO ORDERIROLL CALL
President, Gary L. Peterson called the meeting to order at 7:01 p.m.
Present: Gary L. Peterson, Bobby Williams, Bruce Nawrocki, Tammera Diehm,
Marlaine Szurek and Bruce Kelzenberg
Absent: Patricia Jindra
PLEDGE OF ALLEGIANCE
CONSENT AGENDA
Approve Minutes of July 24, 2007 regular meeting and the Financial Report and
Payment of Bills for the month of July on Resolution 2007-16.
Nawrocki asked about the check for family fun shows. Streetar stated it was the carnival
deposit from the festival.
MOTION by Nawrocki, second by Kelzenberg, to approve the consent agenda items as
listed. All ayes. Motion Carried.
EDA RESOLUTION 2007-16
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL
STATEMENT FOR JULY 2007 AND PAYMENT OF BILLS FOR THE MONTH OF JULY 2007.
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, Ihe money on hand, the
purposes to which the money on hand is to be applied, the EOA's credits and assets and its outstanding liabilities; and
WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers Of 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 July 2007 and the list of bills for the month of July 2007 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 28 day of August, 2007.
BUSINESS ITEMS
Resolution 2007-17, Third Amendment to Contract for Private Redevelopment
Schumacher stated Mike Norton, Kennedy & Graven, as well as Dave Kloeber, the
developer is here tonight to answer any questions the board may have. The Contract
for Private Redevelopment was originally dated September 23, 2003, with 1st
Economic Development Authority Meeting Minutes
August 28, 2007
Page 2 of 10
amendment on April 26, 2005, and the 2nd Amendment was executed on November 22,
2005. The first condo building was constructed, then the residential real estate market
softened, and sales slowed significantly. The current partner, Mr. Kloeber, is continuing
to market the development. Due to the market conditions and the death of his partner,
the developer now needs more time to complete the construction required by the
Contract for Private Development, hence the third amendment, which provides two
additional years, until December 31, 2010, to complete all the phases of the housing
project and 2009.
Nawrocki asked, who are we actually dealing with as he read in the St. Paul paper
recently about the development in Ramsey where the City of Ramsey got their self into
big problems, with the development.
Kloeber stated he has owned Grand Central Properties, since December 1,2004. He
does not know who owns the Ramsey project, has never been involved with the project
and never will be. The executive who was committed to the project, Jim Hisel, who used
to work with Bruce Nedegaard, had fraudulently filled out purchase agreements at
Grand Central, and gave people checks so they could put it back in his account.
Nawrocki asked the attorney, Mike Norton if he was aware of this situation. Norton
stated he was and that the transfer of the Grand Central Properties was from
Nedegaard to Kloeber.
Nawrocki asked what is the third change. Schumacher stated it is to change the
wording of the owner and the term of the agreement is extended.
Diehm expressed to Kloeber that it is a great project, timing is unfortunate, hoped he
knows we are a City and committee that is very committed to this project, supports this
amendment and stated that we will do what we can to help him. Szurek and Kelzenberg
stated they are also in agreement with Diehm, that it is a very nice project. Williams
stated he also thinks the project is very nice and suggested they leave more lights on in
the building, which would attract more people to the building.
Kloeber stated Streetar has been very helpful and has been reassuring him the City is
committed to the project.
Streetar suggested that maybe on the mayoral updates Peterson could have Kloeber
join him. Peterson stated that could be arranged.
Motion by Diehm, second by Szurek, to Adopt Resolution 2007-17, a Resolution
Approving a Third Amendment to the Contract for Private Redevelopment between the
Columbia Heights Economic Development Authority and Grand Central Properties,
LLC, and furthermore, to authorize the President and Executive Director to enter into an
agreement for the same.
Nawrocki felt Nedegaard did a good job on the project, but was concerned that we get
involved in the problems of the project in the City of Ramsey, he doesn't want us to get
into that kind of trouble, because not enough of the right answers were asked. We are
Economic Development Authority Meeting Minutes
August 28, 2007
Page 3 of 10
extending the agreement for three years and the original agreement should have been
done by this time, getting back the TIF money depends on the tax income of the project
and at this time we aren't receiving anything. Diehm told Nawrocki that some of our
reassurance is that we want it done right, and we are tied into the agreement.
Upon Vote: Szurek-aye, Williams-aye, Nawrocki-aye, Peterson-aye, Diehm-aye,
Kelzenberg-aye. All ayes. Motion Carried.
RFS()UJTION NO. 20ll7-17
RESOLl JT!ON APPROVING;\ THIRD AMENDMENTTOCONTRACTH)R PRIVATE REDEVELOPi\.lENT BETWEFN TilE
COLUivlBIA I IEIGHTS ECON()MIC [)EVEUWl'vIENT AUTIIORITY AND GRAND CENTRAL PROPERTIES, LLC
BE IT RESOLVED By the Board ofCotllmissioners ("Board") of the Columbia lleights Economic Development Authority ("Authority") as
follows:
Sed ion I. Recitals.
1.0 I. The Authurity and New Heights Development, LLC (the "Redevcloper")elltered into a Contract fiJr Private Redevelopmelltdated September
22, 2U03, as amended by Filst Amcndment therctodated April 26. 2005 and a Second Ame1\(]ment thereto dated November 22, 20115 (the "Contract"), setting
lorth the tcnllS ami conditions of redevelopment ufeertain propeliy \\ithinlhe Redevelopment Pr~ieet, generally located east of Central Avenue, between 47'h
and 49~) Avelllles.
1.02. New Ileights Developlllent. LLC has changed its legal name to Grand CentHII Propl'rties, LLC but in all respects remains the
Redeveloper under the Contract.
1.03. The parties have dctennined u need to :I111l'tHlthe Contract further, to a4iust the schedule fiJr redevelopment of the su~icct properly due to
circumstances beyond the control of thc Redeveloper.
1.04. The Board has reviewed u Third Amendment to the Contract and finds that the approval and execution thereof and performance ofthc
Authority's obligations thereunder arc in the best intelest of the City ami its residents.
Section 2. Authorit" App,roval: Further PrQl;;ecdings
2.0 I. "I he Thinl Amendment to the Contract us presentcd to the Board is hereby in all respects approved, subject to
modifications that do not alter the substance or the transaction and that are approved by the President and Executive Director, provided that
exccution or the documents by such oflieials shall be conclusivc evidence ofapploval.
2.02. The President and Executive Director are hereby authorized to execute 011 behalfofthe Authority the Third Amendment to the Contract and
any documents referenced therein requiring execution by the Authority, and tu carry oul, on behalf of the AuthOl ity its obligations thereunder.
Approved by the l30ard ofCommissioncrs of the Columbia Heights Economic Development Authority this 28th day of August, 2007
Resolution 2007-18. Awardinq the Sale of. and Providina the Form, Terms.
Covenants and Directions for the Issuance of its Taxable Tax Increment Revenue
Note. Series 2007 A
Schumacher stated the EDA and the City approved the establishment of the Kmart-
Central Avenue TIF District and adopted a T1F plan for the purpose of financing certain
improvements within the project. Pursuant to the development agreement as well as
Minnesota Statutes, Section 469.178, the authority is authorized to issue and sell its
bonds for the purpose of financing a portion of the public development costs of the
project. Resolution 2007-18 approves the sale of TIF notes to the developer in the
amount of $700, 000. This is necessary as it is anticipated the developer will be able to
submit its qualified costs, thus requiring the EDA to approve up to the maximum note
amount of $700, 000 to cover those costs as required by the Contract for Private
Development. Staff will not issue the note until the developer provides his qualified
costs and the costs are verified.
Economic Development Authority Meeting Minutes
August 28, 2007
Page 4 of 10
Motion by Szurek, second by Kelzenberg, to Adopt Resolution 2007-18, a Resolution
Awarding the sale of, and Providing the form, terms, covenants and directions for the
issuance of its taxable tax increment note, series 2007A; and furthermore, to authorize
the President and Executive Director to enter into an agreement for the same. All ayes.
Motion Carried.
RESOLlITION NO. 2007-18
RESOLUTION AWARDING THE SALE 01'. AND PROVIDING TIlE FOInt, TERi\lS. COVENAI'\TS ANn nIRECTIONS FOR THE
ISSUANCE OF ITS TAXABLE TAX INCREMENT REVENUE NOTE, SERIES 2007A
BE IT RESOLVED BY the Board OfCOllllllissioners ("Board") of the Columbia Heights Economic Development Authority, Columbia
Heights, ivlillllesota (the "Authority") as IIJlIuws:
Section l. Authorization: Award llfSale.
1.0 l. Authorin:llion. The Authority ami the City of Culumbia Heights havc hcrctul()re approved the establishment of the Kmarl/Central
Avenue Tax Incrcment Financing District (the "TIF District") the Downtown CBD Redevelopment Project (the "Project"), and hon'e adopted a tax
increment Ilnancing planlar the purpose offillalH..:ing certain improvements within the Project. In eonncction with the TIF District the AUlhorityelltered
into a l'ontraet for Private Redevelopment between the Authority and New Ileights Development. LLC (now known as Grand Central Properties, Ll.C)
dated as of September 22, 2004, as amended by a First Amendment thcreto dated as of April 26, 2005, a second amendment thereto dated as of
November 22,2005, and a Thild Amendment theretu dated as 01'.".__, 2007 (the "Agreemenl"l.
Pmsuant to Minllesota Statutes, Section 469 178, the Authority is authorized to issue and sell its bonds for the purpose offinandnga portion
ofthe public development costs ofthe Project. Such bonds are payable f)-om all or any portion ofrevl..:lIues derived Ji'om the TIF District and pledged to
the payment of the bonds. The Authority hereby l1nds and determines that it is in the best interests of the Authority that it isslIe and seH its Taxahle Tax
Increment Revenue Note in the maximum principal amount orS700,OO() (the "Note") for the purposc of financing certain public redcvelopmentcosts of
the Project.
1.03. Issuance... Sale. and Tcrms__()fthe Note. The Authority hercby delegates to the Executive lJiredorthe determination ofthe date on which
the Note is to be delivered, in accordance with the Agreement. The Note shall be issued to Gland Central Propertics. 1.l.C("O\\'Ile('). The Note shall be
dated as of the date of deli Vel)', shall mature no later than February 1,2013, shall bear interest at the rate of6.0 % per annum from the date of original
isslle or the Note, and shall be in the principal amount of the Public Redevelopment Costs submitted and approved in accordance with the Agreemcllt but
in no evcnt greater than $700,000. The Note is issued in consideration of payment by Ownel or the Public Redevelopment Costs in at least the principal
amount of the Note, in accordance with the Agreement.
Section 2. FOUll of Note. The Note shall be in substantially the following form. with the blanks to he properly lilted in and the principal
amount and payment schedule adjusted as of thc date of issue:
UNITED STATE: OF A!'vlERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
c()LU~vlBJA IIEIGIITS ECON(JivlIC DFVFLOPivlENT AUTl\(JRITY
No. R-I
$
TAXABLE TAX INCREMENT REVENUE NOTE
SERIES 2007
Rat~
Date
QfOri2inal Issue
6.0%
2007
The Columbia I leights Economic Development Authority ("Authority") lor \'alue received, certifies that it is indebted and hereby promises to
pay to Grand Central Properties, U.C or registered assigns (the "Owner"), the principal sum 01'$700,000 or so much thereof as has been from time to
time advanced (the "Principal Amount"), as provided in the Agreement defined hereaner, together with interest on the unpaid balance theleofaeerued
from the date of original issue hereofat the rate 01'6.0 percent per annUlll (the "Stated Rate"). This Note is given in accordance with that certain Contract
for Private Redevelopment between the Issuer and the Owner dated as of September 22, 20()4, as amended by a First Amendment thereto dated as of
April 26, 2005, a second amendment thereto dated as of November 22, 2005, and a Third Amendment thereto dated as of , 2007 (the
"Agreement") and the authorizing resolution (the "Resolution") duly adopted by the Authority on August. ,2007 Capitalized tenus used and
not otherwise de lined herein have the meaning provided for sllch terms in the Agreement unless the context clearly requires otherwise.
I. Pavments. Principal and interest ("Payments") shall be paid on the llrst February I or August I after substantial completion oral!
the Ilollsing Improvements and ('ommerciallmprovel11ents ill accordance with the Agreement, and on each February 1 and Angust I thereafter to and
ineluding February 1,2014 ("Payment Dates"), in the amounts and from the sources set lorlh ill Section J herein. Payments shall he applied first to
accrued interest and then to unpaid principal.
Economic Development Authority Meeting Minutes
August 28, 2007
Page 5 of 10
Paymenls arc payable by mail to the address of the (hvner or such other address as lhe ()wller may designate upon 30 days wriltenllolice to
the Authority. Payments 011 this Note are payablc ill any coin or currency of the United States ofAmcrica \\hidl, Oil the Paymenl Date. is legaltcnder tor
the payment of public and private debts.
2, Interest. Simple interest shall accrue li.otn the date of original isslle of this Note and shall be computed on lhe basis ofa yearof
360 days and charged lor actual days principal is unpaid.
3. Availqble Tax Increment. All payments on this Note are payable UIl each Payment Date solely /i'om and in the amount of the
"Available Tax Increment" which means /a) on the first Payment Dale, 90 percent of the Tax Increment attributable to the Housing Property as defined
in the Agreement that has been paid to the Authority by Anoka County prior to thut I'aymelltl)ate, and (b) on each Payment I)ate allel thc I1rst Payment
Date, 90 percent of the Tax Increment allributable to the Hnusing PlOpcrty as defined in the Agreemenlthat has been paid tn the Authurity by Anoka
Coullty in the six months preceding the Payment Date.
The Authority shall have no obligation to pay pI incipal of and interest Oil this Note on each Payment Date from any source other than
Available Tax Increment and the failure ofthe Authority to pay the entire amount of principal or interest on this Note on any Payment Date shallllot
constitute a deHmlt hereunder as long as the Authority pays pI illc1pal and interest hereon to the extent of stich pledged revenues. The Authority shall have
no obligatiollto pay unpaid balance of principal or accrued interest that may remain aller the !1nalPaymcnt on February L 2014.
4. Defa.ult. Upon an Event of Delhull by the Redevdoper under the Agreement, the AuthOlity may exercise the remedies with
respect to this Note described in Sectioll9.2 of the Agleement, the terms of which arc incorporated hcrein by relclcnce.
5. Qr!JimJaI PrenaVlllcnt. (a) The principal sum and all accrued interest payable under this Note is pn.:payable in wholcor in pari at
any lime by the Authority without premium or penally. No partial prepayment shall affect the alllollnt or timing orany other regular payment otherwise
required to be made under this Note.
(b) IJpon receipt by Redeveloper of the Authority's written statement of the Excess Amollnt as defined in Section3.4(cl orthe
Agreement, nne-halfofsllch Excess Amollnt will be deemed to constitute, and will be applied to, prepayment of the principal amollntofthis Note. Such
deemed prepaymellt is effective as or the Final Closing Date as del1ned in Section3.4(e) ofthe Agreement and will be recOlded by the Registrar in its
records lor the Note. Upon reqllesl of the Owner, the Authority will (Ieliver to the Owner a statemcnt of the outstanding principal balance of the Note
after application of the deemed plepaymentuuder this paragraph.
6. Nature ofObl.!eution. This Note is olle of an issue in the total maximum principal amount of$ issued to aid in
!1nancing certain public redc,'c1opment costs and administratiH: costs ofa Prnjectllndertakcn by the Authority ]lurslluntto Minnesota Statutes, Sections
469.00 I through 4fi9.047, and is isslled pursuanlto the Resolution, and pursuant to and in full conlonnity with the Constitution and laws of the State of
Minnesota, including Minnesota Statutes, Sections 469, 174 to 469 179. This Note is a limited obligation of the Authority which is payable solely n'OIn
the revenues pledged to the payment hereof under the Resolution. This Note and the inter<:st hcreon shall not be deemed to constitute agelleral obligation
of the State of Minnesota or any political subdivision thereoL including, without limitation, the Authority Neither the State of Minnesota, nor any
political subdivision th<:reofshall he obligated to pay the principal of or interest on this Note or other costs incident heleto except from and to the extent
ofthe revellues pledged hereto, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereofis
pledged to the payment of the principal of or interest on this Note or other costs incident hereto.
7. Ree.islIation andTransfer. This Note is issuable only as a fully registered note without coupons. As plOvided ill the Resolution,
and subject to eertailllimitations setlorth therein, this Note is transferable upon the books of the AUlhority kept for that purpose at the principal on1ce of
the City Finance Director, by the Owner hereof in person or by sHch Owner's attorney duly authorized in writing, upon surrender of this Note together
with a written instrument oftnlnsfcr satisfactory to the Authority, duly executed by the Owner. Upon sllch translCr or exchange and the payment by the
Owner of any tax, fee, or gO\'erllmclltal charge required to he paid by the Authority with respect to such transfer or exchange, there will be issued in the
name of the transferee a ne\\ Note 01' the same aggregate principal amount, hearing interest at the same rate and maturing on the same dates.
This Note shall not be transferred to allY persoll unless the Authority has been provided with an opinion of counselor a certificate of the
transferor, in a form satisfactory to the Authority, that stich transler is exelllptfi'om registration and prospectus delivery requirements oftCderal and
applicable state securities laws.
IT IS HEREBY CERTIFIED AND RECITED that all acts. eonditiolls. and things required by the Constitution and laws of the State of
l\'linnesota to be done, to exist. to happen, and to be perlonned in order to make this Note a valid and binding limited obligation of the Authority
according to its terms, have be<:n dOlle, do exist, have happened. and have been perlormed in tlue form, time and IlHlnller as so lequired.
IN WITNESS WIIEREC)F, the Board of Commissioners of the Columhia Ileights Economic Development Authority ha\'e caused this Note to
be executed with the manual signatures of its President and Executive Director. all as of the Date ofOriginallsslle specilied above.
COLUMBIA IIEIGHTS EC'ONOMIC DEVELOP!vlENT AUTIIORITY
Executive Director"Waller R. Fehst
Presidellt"{iary L. Peterson
REGISTRATION PROVISIONS
Economic Development Authority Meeting Minutes
August 28, 2007
Page 6 of 10
1 he ownership of the unpaid balance oCthe \\ithin Note is registered ill the bond legiSh:r of the City Finance Director, in the Hame of the
person last listetl below.
Date uf
Registration
Registered (Jwner
Signature of
('ity Finant:e Director
Grand Centrall'ropertics, l.tC
Federal Tax I.D No.
Section 3. Terms, ExecutiQ!l and Delivery.
3.0 I. Dg.nomination. PaYUlenL The Note shall he issued as a single typewritten note numbered R-I.
The Note shall be issuable only in fully legistered form. Prindpal of and interest 011 the Note shall be payable by check or draft issued by the
Registrar descl ibed herein.
3.02. Da~es: Interest Pavment Dates. Principal of and interest on the Note shall be payable by mail to the owner of record thercofas of
the close ofhusiness un the l1Ikenth day of the month preceding the Payment Date, whethcr or not SHeh day is a business day.
3.03. Rc!!isJnltion. The Authority hereby appoints the City Finance Director to perform the functions ofregistlar, transter agent and
paying agent (the "Registrar"). The enect of registration and the rights and duties of the Allthority and the Registrar with lespectthereto shall be as
f{)ltows:
(a) R~gister. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the legistration of ownership
or the Note and the registration ortranslers and exchanges of the Note.
(b) Iranslh of Note. Upon surrender rur transfer orthc Note duly endorsed by the legistered owner thereof or accompanied by a
wriltell instrument of transrer. in form reasonably satisfactory to the Registrar, duly execnted by the registered owner thereof or by an allomey dnly
authori7ed by the registered owner in writing, the Registrar shall authenticate and deliver. ill the name of the designated transferee or twnsfen.:es, a new
Note ora like aggrcgate principal amuunt and maturity, as reqnested by the transferor. Notwithstanding the loregoing, the Note shall not be transferred to
allY person unless the Authority has been provided with an opinion ofcoullsel or a certilkate of the transferor. in a form satisfhctoryto the Authority, that
such transfer is exempt from Icgistration and [lrospedlls dcli\'el) Icquiremcnts of federal and applicable state securitics laws. .,'he Registrar l11ay close
the books lor registration of any transfer aner the lllleenth day of the month preccding each Payment Date and nntil such Payment Date.
(c) Cancellation. The Note SUI rendered upon any transfer shall be promptly cancelled by the Regisllar and thereaner disposed of as
directed by the Authority.
(d) ImnroPJ;ror Unauthorized Transfer. Whel1the Note is IHcsented to the Registrar lor transler, the Registrar mayrenlse to transfer
the same until it is satisfied that the endorsement on such Note or separate instillment oftranslh is legally anthoriLed. The Registrar shall incur no
liability lar its refusal. in goud faith. to make transfers, which it, ill its judgment. deems improper or unauthorin.:d.
(e) Persons Deemg<1 Owners. The Authority and the Registrar may treat the person in whose name the Note is at any time registered
in the bond rcgister as the absolute owner of the Notc, whether the Note shall be overdue or not for the purpose ofreceiving payment oC or on aecOllnt
ot: the principal of and interest on stich Note and for all other purposes, and all such payments so made to any stich registered owner or upon the owner's
order shall be valid and cffectualto satisfy and discharge the liability nfthe Authority upon such Note to the extent of the sum or SlllllS so paid.
(f) Taxes Fees and Chll~. Forever)' transfer or exchange orthe Note. the Registrar may impose a chargc upon the owner thereof
sufficient to lI~imburse the Registrar lar any tax, fec. or other governmental charge required to be paid with respect to such transfcr or exchange.
(g) l'vlutilated Lost Stolen or Destroved N()\'!;. In case any Note shall becomc mutilated 01 be lost, stolen, or destroyed, the Registrar
shall deliver a llew Note oflike amount, maturity dates and tenor in exchange and suhstitutionlor and upon cancellation ofsudl mutilated Note or in lieu
of and in substitution for such Note lost stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection
therewith: and, in the case the Notc lost, stolen, or destroyed, upon filing with the Registrar of evidence satislactOlY to it that such Note was lost stolen,
or destroyed, and ofthe O\\'llership thereoC and upon furnishing to the Registrar of an appropriate bond or indemnity in Jorm, substance. and amount
satisfactory to it, in whieh both the Authority and thc Registrar shall be named as obligees. The Note so surrendered to the Registrar shall be cancelled by
it and evidence of such cancellation shall be given to the Authority If the mutilated, lost stolen, or destroyed Note has already matured or been called for
redemption in accOldanee with its terms, it shall not be necessary to issue a new Note prior to payment.
3.04. frgpamtion and DeliVer\' The Note shall bc prepared under the direction of the Executive Director and shall be executed on
behalfofthe Authority by the signatures of its President and Executive Director. In case any officer whose signature shall appear on the Notc shall cease
to be such officer before the delivery of the Note, sHch signature shall nevertheless be valid aud sufficient Jor all purposes. the same as ifsueh onicer had
remained in office until delivery. When the Notc has been so execute(!' it shall be delivered by the Executive Directnrto the O\\'lIerthercofin accordance
with the Agreement.
Section 4. Security Provi,,sjons.
Economic Development Authority Meeting Minutes
August 28, 2007
Page 7 of 10
4.0 I. Pledge. The Anthority hereby pledges to the payment I)!' the principal of and interest on the Notc all Available Tax Increment
under the tcrms and as defined in the Note. Available Tax Increment shall be applied to paymcnt orthe principal of and intcrest all the Note in accordance
with the terms orthe form of Note set forth in Seetioll 2 of this resolutioll.
4.02. Bond Fnnd. Until the datc the Note is no longer outstanding and no principal thercofor interest thereon (to the extent requircd to
be paid pursuant to this resolution) remains unpaid, the Authority shall maintain a sepal ate and special "Bond Fund" to bc Ilsed lor no purpose other than
the paymcnt oflhe principal orand interest on the Note. The Authority irrevocably aglecs to appropriate to the Bond Fund ill each year all Available Tax
Increment. Any Available Tax Incremcnt rcmaining in the Bond Fund shall be lIansl'crrcd to the Authority's account lor the TlF District upon
termination of the Notc in accordancc with its terms.
4.03. Additional Bonds. If the Authority iSSlles any bonds or notes secured by Available Tax Increment, such additional bonds or notes
me subOldinatc to the Note in all respects.
Scction 5. f.:crtification of Proceeding:,;.
5.0 I. Certification ofPrucccdings. The officers of the Authority arc hereby authorized and directed tu prepare and furnish to the Owner
orthe Note ccrtiHed copies ofull proccedings and records of the Authority, and sHch other affidavits, certificates, and information as may be rCiluired to
show the facts relating to the legality and marketability orthc Note as the same appear from the books and records under their cllstody and control or as
otherwisc known to them, and all such certified copies, celtilkntcs, and allidavits, including any heretofore fltltlishcd, shall be deemed represenlntions of
the Authority as to the filets recited therein.
Section 6. b:1l'cctivc Date. This resolution shall be effective upon approval.
Adopted this 28 day of August, 2007
Anoka County Housin~ and Redevelopment Authority Economic Development
Activities
Streetar stated Karen Skepper is here from Anoka County. This is an offer from the
Anoka County Housing and Redevelopment Authority (ACHRA), to participate in
ACHRA economic development activities effort. Commissioners are asked to make
recommendation to the City Council for their action on September 10m If not, no further
action is required. What you're being asked to participate in is their economic
development activity project. The City Council must pass a resolution to opt in for a
period of five years and Anoka County would levy a tax in Columbia Heights each year.
In 2008 about $200,000 and every year, thereafter around the same amount, or on an
average of $205, 000 every year starting in 2008-2012. The cost, on an annual basis for
a home worth $200,000 would be $30 to $31 per year. The maximum they could levy is
$247,000 or about another $50,000, which would raise the annual cost for a $200,000
home to $38 or $39 per year. If you choose not to opt in, you must wait five years
before you can opt in. September 14, 2007 is the deadline to decide if you want in or
not. Renewing the housing stock and increasing the tax base is important, but requires
sufficient public revenues and resources. If you participate you can use some of these
funds for redevelopment projects, housing improvement and site preparation costs if
you decided to build a public safety center or community center in Heritage Heights.
Streetar stated an example of how to use these funds would be to acquire, demolish,
and rebuild homes in the Heritage Heights neighborhood. There is only two ways to get
that money: bond for it or use the levy. If you bond for the million dollars you are using
principal and interest to pay for it, as opposed to if they levy, you would request that
money be returned to the community, with no interest. If the county levies the money,
you won't pay interest charges.
Williams asked if every dollar that Anoka County collects would come back to our City.
Karen Skepper of Anoka County stated when the funds come in from taxes, they only
take their administration costs out of that and the rest would be available to the City.
Economic Development Authority Meeting Minutes
August 28, 2007
Page 8 of 10
Williams asked if Streetar was in favor of this. Streetar stated he is in favor of it to
replace blighted housing, provide for home improvement loans, cleaning contaminated
property, and taking care of vacation property. He knows what resources are out there
and it isn't much.
Peterson asked if we would pursue the tax increment. Streetar recommend not
pursuing the special legislation, but in the next agenda item he has put together a
housing plan. With the decertification of the A3, C7 and C8 Tax Increment Districts in
2009 and 2010, it will put a lot oftax capacity back on the roll. That means it is
estimated that your able to increase your levy in the neighborhood of four to five
hundred thousand a year to pay the debt service on any bonds you may sell, for
projects such as the Community Center. You could bond for $5 million and not have to
see a tax increase on residents in the City.
Fehst asked if cities like Fridley, Coon Rapids, or Blaine are participating. Skepper
stated they have not committed at this point, but Spring Lake Park has.
Fehst stated there is so much we want to do and by having this type of revenue from
the county would be beneficial. When you participate in this program you do not have to
levy and if you do this you could recommend the 15% be lowered to 7%.
Nawrocki stated the 15% is a little bit high, but some of our programs are at 10% and
asked what the maximum levy the EDA can use is. Streetar stated the $247,000 would
be the maximum the City could borrow.
Motion by Diehm, second by Szurek, to recommend City Council participate in the
Anoka County Housing & Redevelopment Authority Economic Development Activities,
with the suggestion that the 15 percent be lowered to something more reasonable.
Upon Vote: Nawrocki-nay, Kelzenberg-aye, Peterson-aye, Diehm-aye, Szurek-aye,
Williams-aye. Motion Carried.
Housinq Maintenance Plan
Streetar stated since 2002, one of the City Council's priorities has been maintaining and
improving the housing stock. To continue this process, staff has prepared a Housing
Maintenance Plan for 2008 through 2017 that will provide support to maintain the
housing stock. The plan represents the bare minimum to maintain the housing stock,
and if resources allow should be increased. I am proposing five plans, which three of
them you have been already participating in for many years. The programs include:
1) Housing Resource Center (HRC) provides home improvement loans,
construction management services and information on a variety of housing
topics. Since 2002, services have been provided to 1,819 homeowners. Staff
recommends annual funding of the HRC program in the approx. annual average
amount of $16,800.
2) Home Rehabilitation Incentive Program (HRI), provides homeowners with a cash
rebate of 10%, 12%, or 15% of eligible rehabilitation costs up to $3,000,
Economic Development Authority Meeting Minutes
August 28, 2007
Page 9 of 10
depending on their income, The household income must be at or below 115% of
the area median income or $88,206. Since 2002, 62 homeowners have received
rebates and resulted in about $775,000 of improvements. Cost over 10 years is
$505,000 and the estimated number of rebates is about 440.
3) Single-Family Home Replacement Program (SFHR) provides funding to allow for
the replacement of the most blighted and dilapidated single-family detached
homes in the City with new single-family detached housing. GMHC has been
rebuilding the homes in the past few years. Staff put together an alternative
program to try to do two to four homes per year. What we are recommending is
that every other year beginning in 2008, the EDA provide $50,000 and staff
would go to two other programs to leverage other funds, like we did in 2004 to
tear down four houses and build eight new ones in their place.
4) Single-Family Home Deferred Loan Program (SFHD), provides a no or low
interest deferred loan to a homeowner of lower income to complete structural
improvements that would help maintain the quality of their home and the City's
housing stock. The intent of the program is to provide assistance to homeowners
who need to perform home maintenance, but who may not be able to pay a
monthly debt service of a conventional loan. The loan is deferred and becomes
payable when the property is sold or changes title. The funds are then loaned
out to another homeowner. Staff recommends funding this program over 10
years in an amount of $306,426, which you would expect to provide 20 to 30
loans.
5) Housing Maintenance Capacity Building Program (HMCB), establishes future
housing funding capacity through an EDA annual levy. By establishing this pool
of resources the EDA can be assured this housing efforts that have begun will
continue. Establishing the capacity ensures housing maintenance will remain a
priority in the future. To establish his program the EDA would need to levy an
additional $50,000 annually. The funds would be reserved for housing
maintenance programs to be implemented after 2017. The program would create
$455,931 of housing maintenance financial capacity over the 1 O-year period for
future housing maintenance needs.
In summary, these housing programs, with a total amount of money invested of
$1.6 million over 10 years, suggest taking $1,091,000 from different fund
balances and $450,000 in an annual EDA $50,000 of the levy beginning in 2009.
Interest earnings on those funds over 10 years of $444, 000, be taken and invest
into those programs.
Fehst stated we did talk about extending the levy due to the public safety building, and
activity center. He commended Streetar for coming up with this plan, which allows us
something to show the residents that we are addressing the issues in housing.
Nawrocki stated before we decide on raising taxes we should take a look at what we
are already taxing our residents and he commended Streetar for coming up with these
programs.
Economic Development Authority Meeting Minutes
August 28, 2007
Page 10 of 10
Diehm stated some of these programs we have already been participating, we need to
be very aggressive with our housing, it is important we maintain our housing stock, the
house is the biggest investment that we have, and that we have the obligation to help
our residents out in maintaining this,
Motion by Williams, second by Kelzenberg, to Approve the Housing Maintenance Plan
subject to confirmation of these funds by the finance department.
Upon Vote: Nawrocki-nay, Kelzenberg-aye, Diehm-aye, Williams-aye, Szurek-aye,
Peterson-aye, Motion Carried,
Other Business
Streetar stated Kirsten Partenheimer passed out the agenda for the ACAC meeting that
will be held tomorrow night. You are all welcome to attend,
The next regular EDA meeting will be Tuesday, September 25, 2007 at City Hall,
ADJOURNMENT
President, Peterson, adjourned the meeting at 8:43 p,m,
Respectfully submitted,
Cheryl Bakken
Community Development Secretary
H:\EDAminutes2007\8-28-2007 regular meeting
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of October 23, 2007
AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE
NO: 3 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Financial Report and Payment of Bills BY: Robert Streetar BY:
DATE: October 23, 2007
BACKGROUND:
The bound Financial Report for the months of August and September, Resolution 2007-20 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.
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 2007-20, Resolution of the Columbia Heights Economic Development
Authority (EDA) approving the Financial Statement and Payment of Bills for the months of August and
September 2007.
EDA ACTION:
H:\EOAConsent2007\August September Fin Rep 2007
EDA RESOLUTION 2007-23
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
(EDA) APPROVING THE FINANCIAL STATEMENT FOR AUGUST AND SEPTEMBER2007
AND PAYMENT OF BILLS FOR THE MONTHS OF AUGUST and SEPTEMBER 2007.
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 2007 and the list of
bills for the months of August and September 2007 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- Gary L. Peterson
Attest by:
Cheryl Bakken, Assistant Secretary
H:\Resolulions2007\EDA2007-23 fin August, September 2007
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
Meetina of: October 23, 2007
AGENDA SECTION: Business Items ORIGINATING DEPARTMENT: CITY MANAGER'S
NO: 4 Community Development APPROVAL
ITEM: Adopt Resolution 2007-24, BY: Robert Streetar BY:
Assignment and Assumption: Grand DATE: October 18, 2007
Central Lots, Commercial Improvements
BACKGROUND:
EDA Commissioners are requested to approve a resolution approving an assignment and
assumption agreement, transferring certain rights and obligations in the contract for private
redevelopment between the Columbia Heights Economic Development Authority and Grand
Central Properties, LLC, (Mr. Dave Kloeber) to Grand Central Commons, LLC. (Mr. Ehtesham
Khoratty).
This allows Grand Central Properties, LLC to the sell commercial property, approximately 2
acres, to Grand Central Commons, LLC. Even though the commercial portion will be no longer
be owned by Grand Central Properties, LLC, Grand Central Commons, LLC is now responsible
for completing the construction of the commercial improvements of the project in accordance
with the requirements of the private contract for redevelopment. Under the current agreement,
Grand Central Commons, LLC would be required to complete the commercial improvements by
December 31, 2009.
According to the private contract for redevelopment, before the assignment and assumption is
approved by the EDA, the EDA must reasonably determine that Grand Central Commons, LLC
has the qualifications and financial capability to fulfill the obligations in the private contract for
redevelopment. Grand Central Commons, LLC has assembled a qualified and experience team
to complete the commercial improvements.
Contractor
Pete Nelson, President
Nelson Building and Development, Inc.
2 Division Street E., Suite 201
Buffalo, MN 55313
Leqal
James F. Morrison, Attorney
Morrison Fenske & Sund, P.A.
5125 County Road 101, Suite 202
Minnetonka, MN 55345
Financial
Peter Miller, Vice President
Anchor Bank
City Centre Place
1920 Donegal Drive
Woodbury, MN 55125
Leasinq and Propertv Manaqement
Gary Germundsen, Senior Associate
Colliers International
200 South Sixth Street, Suite 1400
Minneapolis, MN 55402
Desiqn & Development
John Feges, Principal
Collage Studio of Urban Design, Inc.
530 North Third Street, Suite 500
Minneapolis, MN 55401
Staff has met with the parties above and determined that Grand Central Commons, LLC is
qualified and has the financial capability to fulfill the obligations in the contract for private
redevelopment. Please find attached information about the Nelson Building and Development,
Colliers and Collage Studio of Urban Design, In addition, please find attached letter from each
of the team members indicating their intent to work on behalf of Grand Central Commons, LLG.
RECOMMENDATION: Staff recommends Adoption of Resolution 2007-24, the Assignment
and Assumption Agreement.
RECOMMENDED MOTION: Move to Adopt Resolution 2007-24, a Resolution Approving
Assignment and Assumption Agreement transferring certain rights and obligations in the
contract for private redevelopment between the Columbia Heights Economic Development
Authority and Grand Central Properties, LLC to Grand Central Commons; and furthermore, to
authorize the President and Executive Director to enter into an agreement for the same,
Attachments
EDA ACTION:
Kennedy
&
470 {IS Bank Plaia
200 South Sixth Street
ivlinJlcapolis iv1N 55402
(612) 337-9300 telephone
(612) 337-9310 I,IX
hllp:l/\\'\\'w. kennedy-gravell.com
CHARTERED
MEMORANDUM
TO:
Columbia Hcights EDA
FROM:
Michacl Norton
DATE:
October 16, 2007
RE:
Assignmcnt and Assumption: Former K-Mart Sitc
The EDA recently approvcd a "Third Amendment to Contract for Private
Redcvelopment", which permitted the substitution of Grand Central Properties, LLC, for Ncw
Heights Development, LLc, the prior developcr of K-Mart site. Subsequently, the new
Rcdeveloper has agrced to sell approximately two acres of the site to Grand Central Commons,
LLC in ordcr to develop the commcrcial element of the project. In order for this elemcnt of the
redevelopment to procecd, it is necessary for the two partics to execute an "Assignment and
Assumption" agreemcnt (the "Assignmcnt") in order for the parties to comply with Article 8 of
the Redevelopment Agreement.
The Assignment provides that if approved by the EDA, Grand Central Commons, LLC
will then be responsible for completing construction of thc commercial element of the project in
accordancc with the identificd requirements under the Redevelopment Agreement. In addition, if
approved by the EDA, thc Assignment will release the Redevcloper from its obligations under
the Redevelopmcnt Agreement as to thc portion of the Redcvelopment Property, the approximate
two acres, sold to Grand Central Commons, LLC.
322812v1 MTN CL205.20
Therefore, if the EDA wishes to approve Grand Central Commons, LLC as the developer
orthe commercial element of the project, the EDA should approve the provided resolution which
authorizes execution of the Assignment.
ee: Robert Streetar
322812vl MTN CL205-20
COLUMBIA IIEIGIITS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2007-24
RESOLUTION APPROVING ASSIGNMENT AND ASSUMPTION
AGREEMENT TRANSFERRING CERTAIN RIGHTS AND OBLIGATIONS IN
THE CONTRACT FOR PRIV ATE REDEVELOPMENT BETWEEN THE
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND
GRAND CENTRAL PROPERTIES, LLC, TO GRAND CENTRAL COMMONS,
LLC
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 and New Heights Development, LLC (the "Redeveloper") entered into
a Contract for Private Redevelopment dated September 22, 2003, as amended by First Amendment
thereto dated April 26, 2005 and a Second Amendment thereto dated November 22, 2005 (the
"Contraet"), setting forth the terms and conditions of redevelopment of certain property within the
Redevelopment Project, generally located east of Central Avenue, between 47'h and 49th Avenues.
1.02. New Heights Development, LLC changed its legal name to Grand Central
Properties, LLC but in all respects remained the Redeveloper under the Contract, with the result
that the Authority approved a Third Amendment to the Contract, approving Grand Central as the
Redeveloper and modifying certain obligations of the Redeveloper in the Contract.
1.03. The Redeveloper has procured a Subdeveloper lor the Commercial Property
described in the Contract, and seeks to transfer the Commercial Property and obligations related in
the Contract thereto to the Subdeveloper.
1.04. The Board has reviewed an Assignment and Assumption agreement (the
"Assignment") between the Redeveloper and Grand Central Commons, LLC (the "Subdeveloper")
providing lor the assignment of the rights to develop the Commercial Property to the Subdeveloper,
with the Subdeveloper assuming certain obligations of the Redeveloper under the Contract relating
to the Commercial Property as identilied in the Assignment, amI finds that the approval and
execution thereof and performance of the Authority's obligations thereunder are in the best interest
of the City and its residents.
Section 2. Authority Approval; Further Proceedings.
2.01. The Assignment as presented to the Board is hereby in all respccts 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 eonelusive evidence of approval.
2.02. The President and Executive Director are hereby authorized to execute on behalf of
the Authority the Assignment and any documents referenced therein requiring execution by the
322780v2 tvITN CL205-20
Authority, and to carry out, on behalfofthe Authority its obligations thereunder.
Approved by thc Board of Commissioners of the Columbia Heights Economic Developmcnt
Authority this 23rd day of October 2007.
President- Gary L. Peterson
ATTEST:
Secretary-Cheryl Bakken
3227ROv2 MTN CL205-20
DRAFT
10116/07
ASSIGNMENT AND ASSUMPTION AGREEMENT
THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Assignment") is
executed and delivered by and between Grand Central Properties, LLC, a Minnesota limited
liability company ("Assignor"), and Grand Central Commons, LLC, a Minnesota limited
liability company ("Assignee"), as of , 2007 (the "Effective Date").
Assignor and Assignee arc referred to collectively in this Assignment as the "Parties."
RECITALS
A. Assignor, as successor in interest to New Heights Development, LLC, together with
the Economic Development Authority of the City of Columbia Heights, Minnesota, a
Minnesota public body corporate and politic (the "EDA"), entered into that certain
Contract for Private Redevelopment Agreement datcd September 22, 2003, as
amended by First Amendment thereto dated April 26, 2005, a Second Amendment
thereto dated November 22, 2005 and a Third Amendment dated August 28, 2007 (the
"Redevelopment Agreement"), in connection with the redevelopment of certain real
property located in the City further defined therein (the "Redevelopment Property").
Unless otherwise provided in this Assignment, all capitalized terms used herein shall
have the meaning assigned to them in the Redevelopment Agreement.
B. Pursuant to Article IV of the Redevelopment Agreement, Assignor is obligated to
undertake certain redevelopment activities in connection with the Development
Property (including, without limitation, the construction of certain Minimum
Improvements thereon); and, pursuant to Article VIII of the Redevelopment
Agreement, Assignor is permitted to transfer portions of the Redevelopment Property
to a Subdeveloper upon the written approval of the EDA, and to assign certain rights
and obligations under applicable provisions of the Redevelopment Agreement to such
Subdeveloper in connection therewith.
C. The Parties entered into that certain Purchase and Sale Agreement dated as of March
26, 2007 (the "Purchase AgreemenC), pursuant to which Assignor agreed to sell and
Assignee agreed to buy that certain portion of the Redevelopment Property legally
described on the Exhibit A attached hercto and incorporated herein (the "Commercial
Property").
D. Assignor possesses all right, title and interest in and to the Commercial Property
pursuant to the Redevelopment Agreement and now desires to sell, assign and transfer
to Assignee the following rights and obligations under the Redevelopment Agreement
in connection with the Minimum Improvements allocable to the Commercial Property
(the "Transferred Obligations"):
I. Article II, Section 2.2 [Representations and Warranties of Redeveloper], except
Subsection 2.2 (i) thereot;
322796v2 MTN CI ,205-20
2. Article III [Propcrty Acquisition], except Subsections 3. Land 3.4 thereof;
3. Article IV, except the obligations in those Subsections therein which specifically
reference the housing component orthe Minimum Improvements;
4. Article V [Insurance];
5. Article VI [Taxes]
6. Article VII I Financing];
7. Article VIII [Assignment and Transfer; Indemnification];
8. Article IX [Events of Det~lUlt]; and
9. Article X.
E. Assignee desires to assume the Transferred Obligations under the terms and
conditions hereinafter set forth.
F. The EDA has consented to the transfer of the Commercial Property and the
assignment and assumption of the Transferred Obligations by Assignor to Assignee.
ASSIGNMENT AND ASSUMPTION
NOW THEREFORE, FOR GOOD AND VALUABLE CONSlDERA TION, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
I. Assignment. Assignor does hereby sell, assign, transfer, convey, set over and deliver
the Transferred Obligations to Assignee.
2. Assumption. Assignee hereby accepts the foregoing assignment and transfer of the
Transferred Obligations and promises and agrees to assume all liabilities of the
Transferred Obligations, and faithfully perform all covenants, stipulations, agreements
and commitments thereto appertaining.
3. Release of Assignor. As of the EITective Date, Assignor shall be released ii'om the
Transferred Obligations by the EDA.
4. Binding Eftect; Governing Law. This Assignment shall be binding upon and shall
inure to the benefit of the Parties hereto and their respective successors and assigns.
This Assignment shall be governed by, construed and enforced under the laws of the
State of Minnesota. This Assignment shall only be eITective and shall be contingent
upon the consent of the EDA, in writing below. The Parties shall execute and deliver
such further and additional instruments, agreements and other documents as may be
reasonably necessary to evidence or carry out the provisions of this Assignment.
322796v2 MTN CL205-20
2
5. Counterparts. This Assignment may be executed in any number of counterparts, each
of which when so executed and delivered shall constitute an original, but together
shall constitute one and the same instrument.
[Remainder of page intentional~v lefi blank, Signature Pagesfollow)
322796v2 MTN CL205.20
3
DRAFT
10/16/07
ASSIGNOR'S SIGNATURE PAGE
FOR
ASSIGNMENT AND ASSUMPTION
IN WITNESS WHEREOF, the Parties hereto have executed this Assignment as of the
EIJective Date,
ASSIGNOR:
GRAND CENTRAL PROPERTIES, LLC
By:
David N, Kloeber, Jr.
Its: Principal
STATE OF MINNESOTA )
) ss,
COUNTY OF _____)
The foregoing instrument was acknowledged before me this day of
,2007, by David N. Kloeber, Jr., a Principal of Grand Central Properties,
LLC, a Minnesota limited liability company, on behalf of the company.
Notary Public
322796v2 MTN CL20;-20
DRAFT
1011 6/07
ASSIGNEE'S SIGNATURE PAGE
FOR
ASSIGNMENT AND ASSUMPTION
IN WITNESS WHEREOF, thc Parties hereto have executcd this Assignment as of the
EtTeetive Date.
ASSIGNEE:
GRAND CENTRAL COMMONS, LLC
By:
Ehtesham Khoyratty
Its: Principal
STATE OF
)
) ss.
)
COUNTY OF
The foregoing instrument was acknowledged before me this day of
,2007, by Ehtesham Khoyratty, a Principal of Grand Central Commons LLC,
a Minnesota limited liability company, on behalf of the company.
Notary Public
322796\'2 MTN CL205-20
DRAFT
10/16/07
CONSENT OF EDA
The EDA hereby consents to the foregoing Assignment on the terms set forth above.
This consent shall not be construed as a consent to any future assignment of all or any portion
of the interests and obligations ofthe Assignor under the Redevelopment Agreement,
whether to Assignee or any other Subdeveloper.
Dated:
,2007
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY, COLUMBIA
HEIGHTS, MINNESOTA, a Minnesota public
body corporate and politic
By:
Gary L. Peterson
Its: President
By:
Walter R. Fchst
Its: Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before mc this _ day of
,2007, by , and__ ' the
President and Executive Director, respectively, of the Columbia Heights Economic
Development Authority, a public body politic and corporate, on behalf ofthe Authority.
Notary Public
322796\'2 MTN CL205-20
EXHIBIT A
Legal Description of Transferred Property
Outlot C and Outlot D, Gmnd Central Lofts, City ofColulllbia Heights, Anoka County,
Minnesota
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AVENUE
""TFir:
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EXHIBIT B
Transferred Obligations
I. Article II, Section 2.2 [Representations and Warranties of Redeveloper], except
Subsection 2.2 (i) thereot;
2. Article III [Property Acquisition], except Subsections 3.1, and 3.4 thereof;
3. Article IV [Construction of Minimum Improvements),except those Subsections
therein which specifically reference the housing component of the Minimum
Improvements;
4. Article V [Insurance];
5. Article VI [Taxes)
6. Article VII [Financing];
7. Article VIII [Assignment and Transfer; Indemnification);
8. Article IX [Events of Default]; and
9. Article X.[Additional Provisions).
322796v2 MTN CL205-20
Nelson Building & Development (NBD) is a commercial
design/build general contractor with a focus on meeting the
needs of our clients by offering a wide range of construction
related services. These include architectural and engineering
design, realty, real estate development, and construction. We
are committed to listening and understanding our client's
needs, providing a professional and experienced staff, and
dedicating ourselves to the successful process and completion
of your project.
If you're looking for a company that will go beyond what is
expected and strives to be the best, you've discovered one
with Nelson Building & Development, because we are about
Building More Than Just Buildings...
Nelson Building and Development 2 Division StreetE. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com
Our MISSION
Building more than just buildings...
Our VISION
Nelson Building & Development will continue to stand apm1 and grow by
continuing to raise the standards for architectural and construction services.
We commit ourselves to providing extraordinary services that will have a
profound, positive and meaningful impact on our clients, our subcontractors
and consultants, the members of the NBD team, our community and all of the
people we serve.
Our VALUES
Nelson Building & Development promises to earn and keep your trust.
. We promise to aggressively seek out clients, subcontractors, suppliers,
consultants and employees who conduct themselves in a trustworthy
manner.
. We promise to establish clear and reasonable expectations based on our
knowledge and experience, and will work diligently to exceed those
expectations.
. We promise to never put possible financial gain ahead of maintaining our
honesty and integrity.
. We promise to openly admit, accept responsibility for, correct, and learn
from our mistakes.
. We promise to commit no act that could jeopardize the trust given to us.
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682.] 818 www.NelsonBuilding.com
NED was founded in 2002 by Pete and Rochelle Nelson. After almost twenty years of working for a
large general contractor in the Twin Cities area, Pete decided it was time to fulfill a longtime dream of
starting his own construction company. NBD quickly gained a reputation for providing an array of high
quality construction services to our clients. This success is a result of a straight forward business style,
uncompromising values of honesty and integrity, and by keeping trust in the forefront of our business
relationships.
Pete Nelsol/
Since NED's inception we have diversified the range of services we
provide by starting a real estate company, Nelson Realty, to provide a full
range of real estate services, We have also added architectural capabilities
within our operation to provide authentic design-build services to our
clients. One of NBD's greatest assets is the high quality people that have
become a part of the NBD team. Our staff is made up of highly qualified
and experienced people that know what they are doing, love what they do,
and enjoy who they are working with. This equates to a high level of
service delivered to our clients.
NBD is based in Buffalo, MN and has completed numerous projects in the surrounding area. We have
also completed projects in the out~state area and in the metro and are capable of working anywhere our
clients need us to go. In our short history we have completed several churchesl banking facilities, retail
buildings and complexes, distribution centers, manufacturing facilities, private and public schools, and
assisted living and senior care centers. From renovation work to new construction to design-build, no
project is too small or too big for us to handle.
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo,!v1N 55313 763-682-1818 \Vww.NelsonBuilding.com
\Ve know there are other contractors who could build your project, but we also know you
expect more than just a finished product. With Nelson Building & Development you'll
discover high quality craftsmanship, on-time delivery, and the highest value for your capital
investment. At Nelson Building and Development, we are committed to the following:
Having the Right Attitude
V\'e believe each project takes on iCs own personality and it is absolutely critical to approach
our work with the right attitude. We strive to have an attitude of eagerness, teamwork,
cooperation, and problem solving. We take an open and honest approach with each person
involved in a project. We believe that when these things are achieved, the building process can
be an enjoyable experience that will translate into a successful project.
Providing Experi8f1Ce
With Nelson Building and Development, you can be assured that your project will be managed
by an experienced professional. Our team understands; architecture, complex building systems,
materials, and techniques. We exercise a variety of methods to make sure everyone working on
a project understands the expectations and has the expe11ise to meet them successfully.
Complete Dedication
\Ve are committed to providing the best possible constmction service available and making
sure the project is done right. We do not compromise quality for dollars or let schedules slip,
and we work with clients to control project cost.
BuHding Long-Lasting Relationships
We look at every project as an opportunity to build a relationship that will last, thus our vision
statement of Building i\1ore Than Just Buildings was created. For us, becoming a client's
"prefelTed builder" is the highest honor we can achieve. \Ve eagerly look for opportunities to
earn the privilege of becoming the construction services provider for our clients, not only on
one specific project, but for all future projects they may have,
Nelson Building and Development 2 Division StreetE. Suite 201 ButTalo, MN 55313 763-682-1818 \vww.NelsonBuilding.com
General Contracting
Our general contracting services range from
small tenant buildMouts up to new multi-million
dollar ground-up buildings. We offer negotiated,
public bid and private invited bid pricing for
projects. We have a proven record as a
competitive, high-quality contractor.
Design/Bui!d PrDjects
Save money, shorten your delivery time and
have single-source responsibility for your entire
project with our design/build services. We have
in-house architectural capabilities for any size
project and have relationships with numerous
engineering firms who partner with us to create
the right team to meet your needs.
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ReaiEstate<'lervlces
Through our sister company Nelson Realty we
are able to expand our ability to meet our clients
needs. With this new company we now offer
property leasing, property sales, tenant
representation, buyer representation, investment
sales and land acquisition to our list of many
services offered.
CnnstrlJctiofl Management
We can provide full management services on
any project ranging from schools to city projects
to private projects. Many times construction
management provides added benefits to the
owner.
Build/lease Projects
If you are tired of paying rent or need a new
facility but don't want to tie up your working
capital, we can work with you to establish your
facility needs, find the right location, construct
your new facility, arrange a lease and offer you
an option to buy over time.
Building 8 Site Analysis
For those who own an eXIstmg building or
property and are not sure what to do with it, we
offer both building & site analysis. We inspect
and analyze the building, analyze building sites
to determine proper zoning, soil conditions,
traffic patterns, and value. Then provide
detailed reports with conceptual designs as well
as estimated costs to move forward with your
project.
PrapertyOevelopment
If you own property and need professional help
developing it, our team will work with you to
create feasibility studies, preliminary site
planning, and building plans. We also search out
potential users, work with you to put together
financing, and provide construction services.
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682~1818 www.NelsonBuilding.com
lISafety Matters......Just Ask Your Family" is more then just a cute slogan within NED. This
slogan developed early in the histOlY of the company captures what safety is all about at NBD. We
want everybody to go home at the end of the day, uninjured! Since inception NBD has brought this
attitude to bear when analyzing, developing and implementing our safety program.
We understand that our industry can be a dangerous environment and over the years we have taken
numerous proactive steps in regards to safety. In our second year of business we assigned Jeff
Jergensen to become our Safety Director. Since then we have implemented numerous things to
ensure safe worksites such as Daily Site Inspections conducted by our superintendents, a proactive
approach to Tool Box Talks, a simple and practical way of handling MSDS information on our sites,
NBD Jobsite Rules posted on all our sites, a simple and practical policy in regards to Personal
Protection Gear, reporting and learning's from liNear Misses" immediately after they occur, Intense
and Strategic Training of all our personnel and numerous other policies and programs designed to
be a positive, practical and proactive instead of reactive to ensure all the workman on our sites do go
home uninjured at the end of the day.
The result, to date we had yet to have a time loss injury on any of out sites! To be a first class
contractor you have to perform at the highest level in all aspects of the industry. Our safety policies,
programs, implementation and commitment to keeping our sites safe is another testimony of how we
do things at NBD.
Pete Nelson
President/CEO
Jeff Jergensen
Safety Director
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, i\1N 55313 763-682-1818 www.NelsonBuilding.com
./>.
River City Entertainment Center - MQntic8l!o, MN
Nelson Building & Development has been
selected by L & P Ventures, LLC as the
builder for their 61,000 bowling and
entertainment center to be located on School
Blvd in Monticello, NIN. Pope Associates,
Inc. of St Paul, MN is the project architect. The facility includes 36 Brunswick bowling lanes, with
expansion space for 6 additional, mini-golf, amusement arcade, multiple bar/restaurant areas, a full
commercial kitchen, locker areas, and business offices. The design consists of architectural pre-cast concrete
walls with a steel bar joist roof system. Construction began in April 2007 with a completion expected by
October.
Annandale Health C~ Community Smices Annandale Care Center'-Annandale. MN
The Annandale Care Center has selected
Nelson Building & Development as the
construction manager for it's three part renovation project. Phase one expands the existing dining room and
serving kitchen as well as adding a new loading dock and garage, Phase two is the addition of three new
memory care wings, The final phase adds a swimming pool, a therapy pool. locker room and exercise
room. All three phases will greatly enhance Annandale Care Center's ability to serve the people of the
community.
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THE National Bank-EaQan, MN
This repeat client wished to add a branch bank in
Eagan, Minnesota. The purchased a 2.56 acre
commercial site and from that Nelson Building &
Development created three tots, one for the bank
Tlietl3tiOllalBaIl~ d h fi fi d I ('bl
an two at ers or uture eve opment pOSSI e
~ retail and coffee shop).
~ The bank facility will consist of 5,572 slf. The building is proposed to be constructed with a base of
~ decorative concrete block and manufactured stone accents, with the remainder of face brick with
Q~ aluminum windows and storefronts, The central portion of the structure provides a tall, sloping vaulted
~ space, standing seam metal roof and clerestory windows providing natural light to the central core and
~. teller area. The drive-through pOllion of the facility is located to the nOllh providing three teller lanes
~ and a lane for an automated teller machine; the drive through is covered by a canopy stlUcture
constructed of materials similar to the building. Consh'nction is scheduled to begin in July 2007.
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com
Monticello Dental Clinic-Monticelio, MN
Nelson Building and Development
is the Design/Build contractor for a
6,400 s/f dental clinic just north
Monticello, l'l,'fN, This new 14 chair
clinic will boast leading edge teclmology coupled with warm design and finishes to create an atmosphere
both professional and appealing. The structure of the building draws upon influences of the western US
chalet style as seen in and around Jackson Hole, Wyoming. The interior operatories will benefit from
indirect natural light drawn from the donnet's. The Monticello Dental Clinic will be scheduling
appointments for their new location in the fall of 2007.
Mankato House-Mankato, MN
Nelson Building & Development was selected by The Thro Company as the General Contractor for this project that is
the first phase of a possible three phase nursing home project. This phase currently contracted is a one story addition
to a one story nursing home along with the remodel ofa complete wing of the existing facility. The architect for the
this project is \V AI Continuum.
selected as negotiated General
Contractor for the new Kingsway
Retirement Living facility. This
addition will consist of 81 new
units in a senior living community at the existing Lutheran Home Association Campus. The building is
divided up into a 22 Assisted Living units; a 14 Dementia Living units; and a 45 Independent Living units
with a mixture of one, two, and three-story units; wood construction, underground parking, all in one new
building. The construction duration is anticipated to be 14 months with iCs ground breaking ceremony in
April 2007, We look fOlward to working on yet another project with the architect, W AI Continuum.
Nelson Building and Development 2 Division Street E. Suite 20 1 Buffalo, l\1N 55313 763-682-1818 www.NelsonBuilding.com
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Sr. Jnh1\t~ Lutheran Church
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St. John's Lutheran Church -Buffalo, M11
St. John's Lutheran Church in Buffalo Minnesota is a beautiful stone clad church with the traditional narthex at
the back of the sanctuary. The floor plan did not allow infonnal gathering after services. They were also
struggling with a building that had been added to numerous times which made pedestrian circulation difficult
and confusing. Even with the expansion of the narthex it was still difficult to draw people from the back of tile
church to other ministries. Nelson Building & Development created a concept that opened up a new central
gathering area on both floors that would provide room for informal gathering and solve circulation and spatial
issues. A new Family Life Center is placed at the end of a path that creates order in the floor plan and opens
up new possibilities for ministry.
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Center National Bank-Plymouth, MN
Schematic design and prewconstruction are underway, with construction start scheduled for late Summer of
2007. NBD has been selected as the builder to work with 101m Day Company, Center National Bank,
Cressa Partners, and HTG Architects to design and build a new 7,000 s/fbank to be located at 37th Avenue
and Vicksburg Lane in Plymouth, MN. The project will include site preparation of this 4+ acre parcel, with
the bank being constructed on the NW 1 acre lot.
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Servant of Christ-Champlin, MN
Nelson Building & Development competitively bid and was
awarded the construction contract for the Servant of Christ
Lutheran Church addition in Champlin, The addition includes
5776 SF of new sanctuaty on the main floor and 5776 SF of
new classroom space in the lover level. Scope of work also
includes the renovation of existing nal1hex, common area, and
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offices, Project is scheduled to break ground June 2007, The
project architect is Lampert Architects.
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com
Asian Direct-Savage, MN
Wright-Hennepin Ceoperative Electric Association - Rockford, Mil
NED is in the construction phase of Phase II of this project. This
phase consists of upgrades and remodeling to the majority of the
building's office area with a complete redesign of the workstation
layout utilizing "systems furniture". Phase I, completed last year,
included the addition of an executive office suite and conference
rooms. NBD is also beginning the design work on Phase III, which
will include renovation of the dining area, the board room, lobby
and other shared spaces. Phase II construction will complete by
Fall or2007, with Phase III construction scheduled to start carly in
2008,
Cantennial Gardans - Rosavilla, MN
This exciting apartment rehabilitation project is scheduled to begin
in August of 2007 with a completion in the winter months and con-
sists of mostly exterior renovations including window and door
replacements, new facades and parapets as well as some minor site
work upgrades. A new wood framed single story Rental Office
building will also be built to replace their existing.
North .E.kYalioll
Nelson Building & Development is the Design I Builder for this private business owner who has operated a
successful Asian market in Richfield, Minnesota for the past ten years and is expanding into the south
metropolitan area. The owner was looking for a company that could perform construction as well as
architecture and who had experience in creating potential income by subdivision of the property.
The building will house his Asian grocery at 15,000 square feet of area and three smaller tenant lease spaces
ranging bet\veen 1,400 and 1,800 square feet. The building will be constructed primarily of concrete masonry
construction with steel roof joists. The front facades will be a mixture of brick masonry veneer with
manufactured stone accents, exterior insulation and finish system, pre-finished metal canopies, copings, and
trim, and aluminum windows, entrances, and storefronts.
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Eiim Homes - Buffa!o, MN
EJim Care Inc. has awarded Nelson Building the 53,000 s/f addition to their existing Parkview care
center, Based on successful past projects; Elim decided to negotiate solely with Nelson Building for this new
46 unit facility. \VAI Continuum's architectural design consists of a three story, wood framed assisted
living center and a single story, steel framed community center. This project broke ground in the fall of
2006 with a completion set for the summer of2007.
Northland Circle Office Bui!ding -- Brooklyn Park MN
Nelson Building & Development was chosen to
design and build this exciting new office building
located in Brooklyn Park, MN. This Class A office
building will have a threcKstory atrium and enclosed
underground parking. Intended as a professional oftice
building the owner and anchor tenant is a law finn. The
building is designed and situated to fit the
maximize the views of the watershed, Exterior
building materials of burnished concrete masonry units
and dark anodized aluminum frames with tinted glazing are chosen to match the vernacular of the modem
office building. The front of the building in plan view will curve using the 152' radius from the center of the
roundabout at the roadway intersections. That same radius will be used on the fi'ont of the building elevation to
provide a stunning architectural element.
Moon Motorsports- Monticello, MN
Nelson Building & Development is the
design/builder for the new 37,500 sq. ft.
home of Moon Motorsports in Monticello.
The project will be located along 1-94
frontage east of Highway 25. NBD's design
team is working with the Owner and a
nationally known "Power Center" planner to
create an impressive shop, office and
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Moon
showroom space.
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuildingcom
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MinnwBSt Bank- Champlin. MN
We have now completed our 2nd exciting project for MilIDwest Bank! Nelson Building &
Development was the architect and builder of this 5,000 S/F new bank facility on a highly
visible property in Champlin, MN. The building consists of a main level and a mezzanine
level conference area. The finishes are top quality creating a very elegant and inviting
atmosphere.
Cornerstone Church- litchfield. MN
Nelson Building & Development and Station 19 Architects made
up the design/build team for this new church facility located on the
east side of Litchfield, MN. The new facility is approximately
20,000 S/F with a budget of about $2.5 million. This new facility
for the First Baptist Church of Litchfield includes seating for 450,
multi-purpose classroom space, kitchen, restrooms, classrooms, and
nursery/toddler areas. The building is designed for easy and
economical expansion as the congregation grows. Construction was
completed in March of2006.
Minnwest Bank- Minnetonka, MN
A complete new banking facility located on the highly visible comer of Highway 7 and Williston
Road in Minnetonka, MN. This is a three story structure concrete and steel frame
construction. Exterior finishes include brick masonry and precast stone over metal stud back-
up. Interior finishes include drywall partitions, tile, stone and wood casework. This premium facility
will be Minnwest's showpiece for many years to come and was designed by HTG Architects.
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 w\\'W.NelsonBuilding.com
Zion Lutheran Church Addition- Buffalo, MH
Nelson Building & Development completed this $2.5 million 27,000 S/F addition onto Zion Lutheran's
existing facility. NBD worked very closely with Matt Hall at Station 19 Architects and the church committee
to complete this project on time and under budget!
Canyon Grille - Eden Prairie, MH
Nelson Building & Development was contracted to renovate the former
Bilimhi Bay Restaurant in Eden Prairie, MN into a Canyon Grille
Restaurant. The project consisted of a completely new interior finish and
an updated exterior finish. The Canyon Grille Restaurant opened it's
doors on schedule in August of2006.
Annandale fire Station- Annandale, MN
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This was Nelson Building & Development's first Construction Management
(eM) project. Teamed up with I & S Architects and Engineers, Inc. this
project became a reality for the City of Annandale. It's new 12,000 S/F facility
is a precast structure, metal joists and deck, membrane roof, aluminum entrances
and includes dispatch, offices, lounge area for EMT crew, meeting room and full
accommodations for the Fire Crew. Construction began in August 2004 with a
completion in February of2005.
Annandale Town Center- Annandale, MN
Nelson Building & Development has completed this 14,250 SIF retail center DesignMBuild project.
The project is anchored by a 5800 SIP liquor store and is located and highly visible from Highway 55,
adjacent to the 43,000 S/F Marketplace Grocery Store in Annandale. Exterior building finishes
included a combination of rack face CMU, decorative brick, and EFrS.
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo,:MN 55313 763.682~1818 www.NelsonBuilding.com
Pete Nelson
President/Owner
Pete has been involved in the construction business since his youth having
learned the carpentry trade from his father, uncle and siblings. After a few years
of working as a carpenter Pete attended and worked his way through Dunwoody
College of Technology and graduated in 1983 with a degree in Architectural
Drafting and Construction Estimating.
UpOIl graduation Pete started his career in the commercial contracting business
by going to work for a start-up commercial contractor based in the Minneapolis
area. Over the next nineteen years Pete worked with that company and during the
last 12 years Pete was Vice President responsible for overseeing all construction
operations. Over his tenure Pete was actively involved in running and growing
that business into a construction company with annual volumes of over $50
million per year. In the fall of 2002 Pete chose to start his own company, Nelson
Building & Development, and is now fulfilling a longtime dream of owning and
operating his own construction business.
Pete and Rochelle enjoy working together and have been married since 1986.
Together they enjoy the challenge of raising their three teenage boys and that
seems to keep their lives very active. Pete enjoys traveling with his family,
hunting, fishing, golfandjust spending time with family and friends. Pete is a
member of Buffalo Covenant Church where he has served as an Elder.
Rochelle Nelson
Vice Presidellf / Owner
Rochelle's experience in publication design, IT systems, and accounting is a great
asset to NBD. She enjoys designing and helping develop ways to market and
publicize NBD. Rochelle's responsibilities include the company brochures,
helping assemble presentations, keeping the website current, and manning the
front desk.
Rochelle is involved in a variety of ministries at their local church. She has been
involved in leadership and public speaking on both a local and national level,
giving encouraging and challenging talks for women's events and retreats.
Rochelle and Pete have lived in Buffalo since 1994 and love the Buffalo area.
Together they enjoy running the construction business along with raising their
three very active sons. Rochelle also enjoys traveling, reading, watercolor
painting, walking, listening to music and just having fun.
Mark Billstrom
Vice President of Operations
Mark's interest in construction sta11ed early, as a result of job site visits with his
bricklayer Dad in the 1970's, and increased as they worked together years later in
a custom masonry business. Several construction summer jobs later, Mark
completed the financing of his formal education and was awarded a B.S. in
Construction Management from North Dakota State University's College of
Engineering & Architecture.
Mark has had a diverse career in design and management with substantial
experience as both builder and owner's representative. He has completed projects
across the United States in commercial building construction, natural
gas distribution, and telecommunications. Geographically, the majority of his
experience is in the Chicago, IL area and statewide in Minnesota.
Mark's greatest blessings are his wife and three sons. As a family, they like road
trips, biking, home/yard projects, and movies. Westwood Community Church in
Excelsior, MN is their church home. Mark also enjoys fishing, shooting sports
and snowmobiling.
Nelson Building and Development 2 Division Street E. Suite 20 1 Buffalo,:MN 55313 763-682-1818 www.NelsonBuilding.com
Wayne [lam
Vice President of Business Development
Wayne has been involved with the construction industry in various positions since
high schooL While in high school and college, Wayne worked for a local pre cast
company and an asphalt paving contractor.
Wayne graduated from college with a degree in marketing with a minor in aviation.
In the early 1980's, he worked for an oil drilling company in Enid, Oklahoma doing
marketing and investor relations. For the past 19 years Wayne worked for a national
civil contractor with their COllJorate office located in Central Minnesota, After
having held various positions with that finn, most recently as the Vice President of
Business Development. Wayne joined the NBD team in 2003. He is responsible for
expanding NBD's client base, developing client relationships and working with Pete
to expand the business. He also has a real estate brokers license and works with
Nelson Realty.
Wayne and his wife Susan reside in Litchfield,:MN. They love to travel, spend with
time with family and friends, and occupy themselves with their horses. They have
two grown sons. Tim and daughter-in-law Megan reside in Indianapolis; Joseph is
finishing a degree at the U ofM.
George fantauzza
Registered Architect, AlA
Vice President of Design
George started in the construction industry as a laborer in 1972, apprenticed as a
carpenter and eventually owned his own construction and cabinet company. In 1982 he
began his pursuit of an architectural degree graduating with honors with a Bachelor of
Architecture Professional Degree from Montana State University in 1988. He was
licensed as an architect in 1991 and has practiced architecture in MiIll1esota and
Wisconsin ever since.
George joined NBD in the fall of2004. His strength as an architect is that he sees both
sides of an issue and works expeditiously to find appropriate solutions which fit the
design parameters and also is within the established budget. Clients will quickly sense
that he is uncompromising when it comes to protecting their project, always looking
out for their best interest in quality of materials, life-cycle costs and design sensitivity,
He adheres to the guiding design principal that "foml forever follows function" (Louis
Sullivan) which results in buildings that are not only responsive to the client's needs
but are inherently beautiful structures.
George is a dedicated dad with a son and daughter that are the pride of his life. He
enjoys time with the kids and working on home remodel projects. His hobbies include
being a gym rat and singing and playing old rock and roll and the blues.
Don 8erg
Training & Development Coordinator
Following his retirement from a successful career in corporate America, Donjoined
our team to support and aid in the process of helping churches and Christian
schools in their constructionlremodel endeavors. With his genuine care and concern
he seeks to bring clarity and help to individuals and committees as they seek to take
on such a task. His great people skills have been a terrific asset to the 1\TBD team.
Don has also taken on the role of coordinating the training and development of the
NBD team members. As we continue to grow it is vitally important that we stay on
top and up to date in all our skill(s) training. We feel Don is just the man to keep us
on track!
Don and his wife, Jadynne, are in an exciting chapter in their lives. Splitting their
home life between Florida and Minnesota, they are enjoying spending time with
family and friends, especially their grandchildren,
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com
Andy larson
Project Manager I Real Estate Sales
Andy graduated from N0l1h Dakota State University with a bachelor's degree
in Construction Management. Since graduation Andy has gained a wide
range of experience while working for a design build contractor in Central
Mimlcsota . Andy's professional experience has ranged from estimator /
project manager to field superintendent on a variety of commercial projects
for owners of warehousing, manufacturing, and retail businesses.
Andy also holds a State of Minnesota Real Estate Broker license. Andy's real
estate experience has allowed him to represent clients interested in acquiring
property suitable for building or leasing and assisting owners, tenants and
developers through the permitting and development process.
Andy and his wife Michelle have two young sons and a daughter. As a family
they enjoy fishing, camping, and playing hockey. Andy and his family
currently attend Oak Heights Covenant Church in Hutchinson.
Mike Anderson
Project j}/onager
Mike first started building when he was sixteen. Under the direction of his
uncle, Mike !eamed the carpentry trade in a small residential construction
business. With this knowledge and skill, Mike put himself through college by
working as a carpenter. In 1999, Mike graduated with a double major in
English Literature and History from the University of Wisconsin - River falls.
Since then Mike has gained additional experience in the field as a carpenter
and eamed a degree in Architectural Drafting and Estimating from Dunwoody
College.
Mike resides in Buffalo with his wife Stephanie and their daughter Peyton.
Mike enjoys spending time with his family and friends and continues his love
of literature by reading voraciously in his spare time.
lane Florek
Project l}/anager
After graduating from Minnesota State University - Moorhead in 1998, Zane
received many valuable years of experience with a very reputable, full service
genera! contractor in St. Paul working mainly on developing community,
educational and religious facilities. His emphasis was in negotiated general
contracting and design/build services to a diverse client base throughout the
Twin Cities area.
Zane enjoys sUlTounding himself with a team of dedicated professionals at
NBD who have a passion for building structures of superior craftsmanship,
attention to detail, and maintaining a commitment to personal integrity.
Tfhe's not sailing in the fresh water lakes of the Midwest or the blue waters
of the Caribbean, then there is a good chance he is plmming his next sailing
vacation. Zane enjoys living in Eden Prairie and commuting to the smaller
Buffalo community.
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, J\1N 55313 763-682-1818 www.NelsonBuilding.com
Jacob Ullery
Project kJanager
Jake became involved in construction at 15 years old when he began working as
a laborer framing wood basements for a local home builder. Throughout high
school and college, he spent summers working in the concrete/masonry,
framing, cabinetry and electrical trades. Aside ii-om achieving a diverse
portfolio in the field, Jake has gained eight years experience in estimating and
project management with negotiated, design/build, and hard bid commercial
projects.
Jake and his wife Stefany call Buffalo their home. They enjoy home
improvement and gardening/landscaping projects. They also love getting out of
to\\'11 to find new adventures such as camping on the St. Croix, navigating
through islands of Lake of the \Voods, or winter wilderness snowshoeing on the
North Shore.
Dan fair
LNH, CALA
Senior Housing Specialist
Dan Fair joined NBD in May 2007 to serve as their Senior Housing Specialist.
Dan came to NBD with extensive experience in the development, construction
and operations or various fonns of senior housing over the past 25 years. His
main role at NBD is to work with various health care professionals to
investigate, develop and implement various types of senior housing and
services (new & renovated LTC communities, Independent Living, Assisted
Living, Memory Care, Cooperative Living, Town Home communities) in select
campuses in Minnesota and other states.
Mr. Fair received his Bachelor of Al1s degree in Communications at Bethel
College in St. Paul, MN, became a licensed long-teml-care administrator in
1982, and is a nationally certified through the American College of Health care
Administrators for both long-term care administration and assisted living.
Dan and his wife Andrea have been residents of the Delano area since 1982.
after raising their two sons and a daughter in the area, they continue to remain
active in their community through love, INC., church music ministry and youth
ministry at Village Free Church. They also enjoy traveling to see their children
who live outside ofMN. Dan enjoys hunting, fishing, trips to the BWCA and
gardening.
Bruce Bechtold
Accountant
Bruce graduated from the Academy of Accountancy in 1984 and made
his start in the accounting world working for a general contractor in
Minneapolis. While his career has remained focused in the construction
industry for over 20 years, he has been involved with developmental and
property management accounting, human resources and over six
computer system conversions.
After spending many summer weekends on Clearwater Lake, Bruce and
his wife Robin decided to make it permanent and moved to the
Annandale area with their three children in 1994. He has been active
with children's ministries and is currently serving at A.llnandale
Evangelical Free Church. With a busy lifestyle of raising children, Bruce
finds time to enjoy landscaping, music, camping, home remodeling and
spending time with family and friends.
Nelson BuHding and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682.1818 www.NelsonBuilding.com
Cor8Y Brunton
Registered Architect AlA, CID
Corey knew he wanted to become an architect since he was seven years old. Af-
ter attending related classes at a local community college during his high school
years, Corey attended North Dakota State University to further pursue his dream
of becoming an architect. While attending college, he began working for a local
architectural design film in Fargo as a part time intern and graduated from there in
1993 with Bachelor degrees in Environmental Design, Architecture, and Interior
Design. Immediately after graduation, Corey accepted a full time position with an
engineering and architecture firm in Albert Lea and moved to Austin to set up
their home. It was there that his two children would be born, Tyler and Ashley.
In 1999, he was asked to join a 20 person E&A firm in Mankato, IvfN to head up
the architectural design department. The 20 person design finn quickly grew to
90 persons in 2006 and added Interior Design to the list of design ser-
vices. Through the many years of his directorship, he acquired design skills
needed to design churches, banks, fire stations, office buildings, and manufactur~
ing facilities, to name a few.
Corey has been an active member of the community and is a commissioner for the
North Mankato Planning & Zoning Board. Corey, his wife Cheryl and their two
children reside in Mankato where they are very active in their home church, Hill-
side Assembly of God in Mankato. In fact, Corey is involved in the worship team
as their drummer and a singer. A few leisure time activities he enjoys are; fishing,
snowmobiling in the mountains, volleyball, softball, and hunting wild game.
St8ve Binek
Project Architect
Steve brings thirty plus years of architectural practice, managing projects of any
building lypes, including churches, commercial office, retail, motion picture
theaters, warehousing and storage, manufacturing and process, medical, and
hospitality. He received a vocational degree in architectural drafting prior to
attending the School of Architecture at the University of Wisconsin, Milwaukee
and was licensed as an architect in 1992. He has participated on projects
throughout the country fonn New York to Califomia and Minnesota to Texas.
Steve joined NBD in the fall of2005 and brings the ability to translate building
design to construction contract documents, incorporating a solid knowledge of
building materials, codes, and construction methodology. His exposure to many
types of buildings allows him to interface and anticipate clients needs to assure a
finished product specifically tailored to the needs of the user.
Steve and his wife, Leslie live in Plymouth with their two teenage sons. They are
involved in the leadership of their church, Ramsey Cornerstone Church in
Hopkins, and Steve is a teacher at Life Christian University and Seminary where
he is pursuing his D.Min. in Theological Studies as well as participating in jail
ministry through Missionary Evangelism to Corrections.
Eric Munt
Project Engineer
Eric entered the construction industry by attaining an Associates Degree in CAD
Technology from Northwest Technical Institute. He has worked as a CAD teclmician
for prominent architectural and structural firms around the Minneapolis area. Eric is
currently working towards a Bachelor's degree in Construction Management at the
University of Minnesota.
Eric lives in Golden Valley with his wife Bridget and daughter Madeleine and son
Mason. He enjoys spending time with his family, hunting, fishing and dirt biking.
Nelson Building and Development 2 Division StreetE. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com
Jeff Jergensen
Safe(~1 Director
Jeffgraduated in 1981 from the University of Wisconsin - Steven's Point
with a degree in teaching (Math and Coaching). Jeff has been a teacher, a
coach, an insurance underwriter, an account analyst and computer software
specialist.
Jeff has continued to add to his skills and background with continuing class-
foom coursework in construction as well as job responsibilities which in-
clude project administration, company safety director and mentor, and office
VI support specialist.
Jeffs wide ranging experience, maturity and his eagerness to learn and sup.
port the team makes him a very valuable asset to the project, design and
marketing teams at NBD .
Jeff and his wife Mary Ann live on a hobby [81m outside of Buffalo with
their three sons. Their lives are filled with the pursuit of sports, music, gar~
dening, and of course "the chores". Jeffis currently an active member at
Buffalo Covenant Church.
Cheree' EJJen
Project Engineer / Real Estate Sales
Cheree started working in the construction industry in 1990 as a quality
control inspector for a residential builder. In 1998 she made the switch to
commercial construction. Cheree has also attended several classes at
Dunwoody. Cheree's knowledge of construction ranges from estimating to
accoullting. Her varied experience coupled with her willingness to learn
makes her a valuable member of our team. She has also acquired a realtor's
license and assists in Nelson Realty.
Cheree and her husband Donn live on a hobby faml in Andover, MN.
Between them they have 2 sons and 1 daughter. They enjoy playing music,
motorcycling, hunting and fishing. Cheree is a Bible study leader for
Women's Ministry at Constance Evangelical Church in Andover.
Leanne Rumsey
Project Engineer
Leanne got her first taste of the construction world from being the
daughter of a general contractor. First lesson leamed: don't look at the arc
when someone is welding. After high school Leanne attended
Northwestem College where she graduated in 2003 with a double major
in Christian Education and Bible. Although she never thought she'd
follow in the construction footsteps of her father, she found herself with
the opportunity tojoin a great team of people at NED. Leanne is a great
addition to the team with her attention to detail and strong desire to
succeed.
Leanne lives in Buffalo and enjoys reading, writing, sports, the great
outdoors, and spends as much time as she can with her family and
playing with her five little nephews. Leanne is also active in the youth
ministry at Buffalo Covenant Church where she assists part time.
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, i\1N" 55313 763-682-1818 www.NelsonBuilding.com
Darin Botts
Design Production lv/allager
While attending Hennepin Technical College to eam his architectural
drafting degree, Darin worked at a lumber yard selling building
materials. Over the past 15 years, Darin has worked in both the residential
and commercial fields of architecture; working on projects ranging from
single family homes (valued in the multi million dollar range), to industrial
and large university buildings. While facing challenges on these projects, he
found a great sense of accomplishment in finding creative and efficient ways
to solve technical design issues for the owners.
Darin delights spending his free time with his wife, Lynn, and their young
children Chloe and Noah. He enjoys working on home improvement
projects and restoring his motorcycle. Darin and his family are active
members at Community of the Cross Church in Hopkins.
Sean Schmitz
CAD Technician
Sean began his career in architectural drafting in 1997, but had a love for
architecture in his early high school days. Sean attended classes and eanted his
architectural degree from the Minneapolis School of Drafting. He has since
acquired close to ten years experience in the drafting field, first working for a
major architectural finn and in 2003 starting his own independent drafting
service, where he offered both residential and commercial drafting services.
Sean and his wife Tara and their three children reside in Maple Lake. Sean enjoys
spending time with family and friends and has a great love of the outdoors. Sean
also enjoys fishing, playing volleyball and golf, and volunteering as his son's Cub
Scout den leader.
Sean is excited to be a part of Nelson Building and Development, Inc. and looks
forward to providing excellent service to meet all team and client needs.
Bryan Platisha
CAD Technician
In 2003 Bryan graduated from Dunwoody College of Technology with a
degree in architectural drafting and estimating. After college he went to work
in a local1umber yard where I designed new homes, remodel and light
commercial projects. After 2 years he became a truss designer at a local truss
company, but was laid off after a year due to a slow down of residential
building. Bryanjoin the commercial construction industry in 2006 working
with an engineering firm working on a wide range of projects from Bio-diesel
plants to grain elevators.
Bryan lives in Montrose with his wife Jocelyn and there puppy Lola. I love
playing golf in the summer every chance I get. I enjoy playing tellllis, hockey
and hunting. In the past I have volunteered in Hutchinson, MN as a coach for
hockey and tennis and hope to be able to do more in the future.
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com
.~, .....~ .~ l"~' .~.no ~..~~..~... ~~., .~~ .~ u.~_. .... .~....,...
Oel Wingenter
CAD Technician
Del started in the construction industry while still in high school. He worked
evenings and weekends doing commercial construction. Del enjoyed field
work and sought to learn more, He attended MiIll1eapolis Drafting School and
eamed a degree in architectural drafting. Upon graduation, took ajob in the
fire and water restoration field. Eventually, joining a large architectural group
and worked on projects like the new Best Buy Corporate Headqumters in
Richfield and Raynor Library at Marquette University and became adept in
AutoCad. Del enjoyed drafting, but wanted to be more involved in the day to
day field activities, so he took a position as a Project CoordinatorlField
Inspector. He has since found a home with NBD in the fall of2004 where his
primary duties are Architectural Drafting.
Del enjoys playing softball, football and volleyball, but his first love is
snowmobiling. You will find him on most winter weekends bouncing around
the white drifts on his snowmobile.
Gnnis Mabin
Field Superintendent
Chris started in the construction industry leaming the trade from his father.
His eIuoyment of the craft lead him to pursue remodeling work, right out of
high school. For six years he worked in residential before switching to
commercial. Within 9 years, Chris has gone from carpenter to foreman and
on to superintendent. He has worked on a variety of job sites.
Chris and his wife, Jessica, live in Otsego with their 3 boys, They like to
spend time doing outdoor activities like camping, swimming and biking.
They are active members at Osseo United Methodist Church where Chris
serves on the Board of Trustees. He is also a member of the men's group
and is active in discipleship ministry.
Bnian Nickolauson
Field Superintendent
Brian started in the construction indusny in 1977 as a carpenter and lumber
salesman eventually managing lumber yards and in 1991 stalted his own
company building custom homes. In 1997 he began supervising commercial
construction projects, including strip malls, a health club, clinic, bank,
nursing home, funeral home, 75 unit apartment, and more.
Brian finds it rewarding being patt of a team that brings a building from
inception to successful completion, and enjoys refining the process and
building relationships along the way. Brian received a degree in Industrial
Psychology from the U ofM and has taken many courses in construction and
construction safety.
Brian and his wife Tracy, live in the Clearwater area with their 3 children
who keep them very busy. In their spare time they enjoy being outside, on
the lake, on the slopes, or on the trails. Brian and his family are very active
in various ministries at Rejoice Lutheran Church in Clearwater.
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com
Gerry labau
Field Superillfende1ll
Gerry's interest in building and making things with his hands began as a
young man growing up in Minnesota. By the age of 17 Gerry was
working for Independent Lumber Yard, Inc. in Monticello, NIN. His life
took him to many locations around the United States working in the oil
exploration industry, civil engineering and residential construction. After
returning to Minnesota, Gerry worked as a production manager for S.H.
Clausin until 1999 . After a short stint nUUling his own business he
returned to the construction industry in 2002 and joined NBD in 2003.
Gerry and his wife, Margo, live in the countI)' near Monticello and have
two children, Joshua and Katie. In his spare time Gerry enjoys hunting
and tournament fishing.
Dan Iskierka
Field Superintendent
Dan started in the construction business as a bricklayer and was a member of
the Local #2 for over eight years, In 1985 he started his own concrete and
masonry business which he ran for 14 years, In 1999, Dan made the transition
into general contracting, Dan was a project superintendent for numerous
design/build projects in the Blaine area,
Dan resides in Big Lake and has two grown boys and a young daughter. He
has been very active in coaching as his kids have grown up and remains very
involved in their sport activities. He enjoys not only coaching, but pal1icipates
in numerous sports himself. Dan is an avid snowmobile rider and enjoys all
outdoor activities and any new challenges that come his way.
Chad Reitmeier
Field Superintendent
Chad started out as a laborer in the construction industry while in
college. After completing an Associates of Arts degree and a degree in
Physical Damage Appraisal and Claims Adjustment, he went on to work
as a licensed insurance adjuster for a few years, In 1995, he returned to
construction and spent the next II years working in sales and project
management for a builder of post frame buildings, Chad joined NBD in
September 2006 and is thrilled to be faced with the new challenges this
opportunity has presented.
Chad and his wife, Deb, live in Annandale with their sons, Ethan and
Alex. Besides trying to keep up with his very active two year old son,
Chad likes spending time outdoors. He enjoys four~wheeling,
snowmobiling, fishing and hunting. He and his family are members of
Zion Lutheran Church in Annandale,
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com
Terry Hoyel
Field Superintendent
Terry started in constmction right out of high school tending block for a home
builder which eventually brought an opportunity his way to work for a
commercial constmction company. As a construction laborer Terry worked
on a wide variety of jobs across the metro area. He then became a foreman of
a concrete crew and ran jobs for projects such as Regency Hospital and Excel
Energy Center. After a shoulder injury and surgery to repair it, Terry
reentered into commercial construction as ajob superintendent where he ran
jobs ranging from lOOk to 4.5 million. He joined the NBD team in October of
2006 and said he is honored to be part of tile team.
The most imp0l1ant thing to Terry is his wife, Tamra, and their two daughters.
Other than going hunting maybe twice a year and fishing as much as he can,
Terry really enjoys spending time with his family. He believes life is too short
to not spend time with them and relishes every moment. The best part of his
day is seeing their greeting smiles when he retums home from work,
Cory Nasset
Field Superintendent
Cory is a third generation carpenter and started working with his father in
1979. After 8 years he went to work for a General Conh'actor where he
started as a carpenter, then in the 90's began to run his own projects, Cory
has a wide variety of commercial projects he has worked on, some new
construction and some remodel. Some of these projects include: a
wastewater treatment plant remodel, nuclear storage facility, communication
buildings; office buildings school, day care, restaurants, banks, retail stores.
Cory spent three years on the development of a Christian Leadership
Training Facility consisting of a Main Lodge, Guest/Mentor House and
twelve log cabins for student housing on a ridge overlooking the lake in
nOltheast Minnesota.
Cory resides in Chanhassen , :MN . His favorite pastimes and interests
include; working on home and auto, riding motorcycle, reading, old farm
machinery and when the opportunity presents itself; going up north and
working and operating machinery on his uncle's faml.
Brad Esson
Field Superimendent
Brad's interest in construction began with his work in the pavement marking!
highway construction industry, Brad managed and supervised a crew for 12
years. He then spent several years in residential building before switching his
interests and focus to commercial side of construction. Brad has spent the last
7 years as ajob superintendent with a commercial general contractor. Some of
his projects have included; ground-up, designlbuild, retail, major renovations
and tenant improvements.
Bradjoined the Nelson team in October of2006 and looks forward to
building trusted relationships. Brad resides in Buffalo and enjoys
snowmobiling and upland hunting with his black lab.
Nelson Building and Development 2 Division Street E. Suite 201 ButJalo, t1N 55313 763-682-1818 www.NelsonBuilding.com
,i~ :~O\ "Once the contract was m.'arded and
~ Nelson Building & Development came
1/1 on board we finally achieved peace 0/
SHARErHEJOY "II "II d I" b"l"
mUll. am sfr amaze at t Ielr a I fly to
stay on schedule, handle our last minute changes, and
provide the service and value we are
getting on this project.
Our committee's primmy objective was to meet the
needs of the congregation on a Vel)' limited budget. At
eve,), turn in the planning process we were constantly
told that our needs exceeded our budget, that it just
couldn't be done. I feel that it is a direct result of
NED's involvement with the project that we will meet
those needs and stay in budget. There is no doubt that
we are getting extremely high quality and tremendous
value for our dol/ar. "
John Falenschek-Project Committee Coordinator
Faith Lutheran Church of Becker
MINNWEST
BANK
"Pete, your entire team
of employees, always kept
us up to date on the
project displaying both honesty and excellent
communication skills. Nelson Building and
Development receives the highest marks
possible in all categories, which include:
quality of work pelformed; meeting of
schedules, needs, and requirements; safety
attitudes; communication; cost control; and job
site cleanliness. Thanks for making this such a
pleasant experience. "
Janet Dupre -President
CROWN~COmGE
"College faculty
and staff enjoyed
working with the various Nelson team members. Nelson
Building & Development's commitment to excellence
was evidenced in each employee involved in the
nursing project. Each employee acted in a professional
manner, communicated effectively, and brought with
them a concern/or the quality of their work."
Division of Finance and Human Resources
Crown College
"Throughout the building process
Nelson Building & Development
exhibited professionalism. Integrity, and
dedication. I will continue to use Nelson
Building as my builder. Their peJformance and
attitude has proven to me their ability to
successfully build, not only buildings, but lasting
relationships with clients. "
William Graves-Owner
Development 101 LLP
~
-.-......-....-. .^.... " '-~" -
"The many years of construction experience you and
your staffhave, helped make the project painless and
enjoyable.
You made it possible for us to concentrated our time
and efforts on serving our many bank customers
during the recent transition. Thanksfor working with
liS.
David Elsenpeter-PI'esident
Lakes State Bank Pequot Lakes, MN
TAW lOHN'S Nelson Building &
. Development dId a
1l~rN:'l;JEml!l"i"la~'ma'~ .'
great Job oj
bringing together a good group of subcontractors
whose workmanship and patience was instrumental
in making this project a success. I thank you for a
job well done and look forward to working with
Nelson Building & Development on a future
project. "
Tom Holthaus-President
JAT Restaurants, LLC Monticello, MN
S7IiRB "The project became a \'eJY long and
- K complicated affair with a number of
unexpected twist and turns outside of
Nelson Building & Development's
control. But Nelson Building & Development did not
sway and stayed firm on completing the project. They
accepted each challenge to the project and continued to
work with us to overcome the obstacles.
Through out the project, and its many obstacles, we
were impressed with Nelson's communication efforts
and their professional manner. "
Thomas Frederick-Arena Building Committee
STARS Y olith Hockey Association
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, ~lN 55313 763~682-1818 www.NelsonBuilding.com
"From day one, this firm has
presented itself as a first class
operation. This starts with its
leader, Pete Nelson, and continues
throughout the organization. Even
though they are a relatively new business, they were
selected by our church for our remodeling and building
project.
They understand that this is truly our church and our
project and they work vel)' hard to serve us in evel)'
way. When all is said and done, if someone were to ask
me if 1 would use Nelson Building and Development
again, 1 would say resoundingly, yes! I believe if you
select them, you will, in/act, say the same."
Rick Johnson-Building Committee Chairman
Zion Lutheran Church of Buffalo
eY.
"After interviewing three qualified
firms, we chose Nelson Building &
Development because bank
management believed that we could
develop a very good working
relationship with this firm and that certainly proved to
be the case.
Nelson Building & Development worked vel)! closely
with our architectural firm and bank management to
ensure the addition was built according to the plans
and specifications. We would highly recommended the
firm of Nelson Building & Development.
Charles Dennis-Sr. Vice President
Northwood's Bank Park Rapids, :MN
..!.8nnandale "Annandale highly
recommends ll,Telson
Building and Development for any project you may
wish to build. From the City Administrator
prospective, the entire project has been smooth and
without any major hang ups. The communications
between ow' office and Nelson has been excellent.
Nelson has been quick in returning calls and
addressing issues immediately.
In conclusion, I would highly recommend using
Nelson Building and Development. "
j\:Iark Casey-City Administrator
City of Annandale, MN
"I want to commend your
company on the wondelful job
you did on the Downtown Wine &
Spirits for the city of Buffalo. The work on the store
was of the finest craftsmanship. It was also
completed within the time e.\pected and on budget.
In fact, I know you pushed as hard as you could to
meet a velY strict deadline for opening the store. As
you know this store is owned by the citizens of
Buffalo-it is a building they should be proud to
own. Please commend your staff for us. 171ey were
wondel:fid to work with. When we requested a
change, they were velY quick to comply. They
exhibited a great deal of pride in what they do. That
reflects velY well on your company. "
~-lerton Auger-City Administrator
City of Buffalo, .MN
"fFfILIt:: iii IUWIIlIU
, fI1J;; BA/IlK
I would like to take this oppor-
tunity to THANK YOU for all
the great work you and your subs didfor us at THE
National Bank-Edina.
NBD's prompt, and professional responsiveness to
questions or issues made the job run smoothly. I
appreciated the personal attention that was given
our project.
It is for these reasons that I can say NBD will be
invited to bid on any future bank projects in the
.Minneapolis metro area.
Mary Ann Reid
Vice President Facilities ;\'Ianagement
"Throughout the construction process Nelson Building
met all expectations by; staying within budget,
producing an excellent structure, achieving the
requirements of a strict time line. Based on their
excellent pelformance, Nelson Building automatically
became the contractor 0/ choice for our Phase II"
:Mike Krutzig-Owncr
Monticello Business Center
"The communication
fi'om Nelson's was
extremely professional, organized and concise. Our
project was delivered on time and with the best
customer service in the business. We would definitely
recommend Nelson Builders to anyone and would
use their services again. "
Brad Fisher - i'vlanager/Broker
Edina Realty
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763.682.1818 \vww.NelsonBuilding.com
C"k
W'~~;)j"~"i('~!lJ>~
""T-- BuiIdjn~~'" n~'"d..pm~'nt In..-.
,
2 Division Street E., Suite 201
Buffalo, MN 55313
Ph: 763-682-1818 Fax: 763-682-3053
A Corporation of the State of Minnesota,
Date ofIncorporation 12-26-02
Principal Owners: Peter A. Nelson & Rochelle R. Nelson
BANKING
Mr. Randy Haskins
President
Klein Bank
910 Commercial Drive
Buffalo,.MN 55313
Ph,763-682-1142
BOI@NG
MI'. Jack Cedarleaf
President
Cedarleaf, Cedarlcaf & Cedarleaf, Inc.
360 Larpenteur Ave.
St. Paul, MN 55164
Ph, 651-488-6666
OWNERS / CliENTS
Mr. Jeffery Vcst
Owner
Northland Circle Office Building
5385 Carlson Road
Shoreview,.MN 55126
Ph, 763-566.3720
INSURANCE
1\'11'. Barry Quernemoen
Apollo Insurance Agency
28-llth Avenue South
St. Cloud, MN 56301
Ph, 320.253.1122
Ms. Mary Ann Reid
Vice President Facilities Management
THE National Bank
PO Box 1030
Bettendorf,IA 52722
Ph, 563-344.3935
SUBCONTRACTORS S SUPPliERS
:\11'. Nick Nowacki
Project Engineer
Meyer~Rohlin. Inc.
1111 Highway 25 North
Buffalo,:MN 55313
Ph,763-682-1781
Mr. Rick Johnson
Building Committee Chairman
Zion Lutheran Church
214 Northeast First Ave.
Buffalo,:MN 55313
Ph,763-682-8773
]\.lr. Duane Rolstad
Owner
Rolstad Construction
I 855-20th Street SE
Buffalo,:MN 55313
Ph, 763-682-3765
Mrs. Janet Dupre'
President
Minnwest Bank
14820 Highway 7
Minnetonka, MN 55345
Ph,952-230-9800
Mrs. Kara Gorres
Owner
Twin Cities West Flooring
9490 County Road 35 West
Annandale, MN 55302
Ph, 320-963-6797
ARCHITECTS I ENGiNEERS
Mr. Richard Brownlee
Principal Architect
Station Nineteen architects
2001 University Ave. SE
Minneapolis, :MN 55414
Ph,612-623-1800
i\'Ir. Tom Packer
Centraire Heating and Air Conditioning
7402 Washington Avenue
Eden Prairie,:MN 55344
Ph, 952-941.1044
Mr. Don Stocker
Owner
Stocker Excavating, Inc.
12336 Boone Avenue South
Savage, MN 55378
Ph,952-890-4241
Bill Buesing
Architect
W AI Continuum
381 Kellogg Boulevard
St. Paul, l\.1N 55101
Ph,651-227-0644
Mr. Ron Enter
President/CEO
Wright Lumber & ;\'Iillwork, Inc.
Highway 25
Buffalo, :MN 55313
Ph, 763-682-4441
Mr. Carl ilSkip" Sorensen
Project Executive
Pope Associates
1255 Energy Park Drive
St. Paul, MN 55108~5118
Ph,651-642-9200
Nelson Building and Development 2 Division Street E. Suite 201 Buftalo,:MN 55313 763-682-1818 www.NelsonBuilding.com
PROJECT
CONTACTS
Minnwest Bank-Minnetonka
952-545-8815
Janet Dupree
President
Rob B..andwick
Project Architect - HTG Architects
651-227-0644
Elim Care, Inc.
763-295-3347
Loren Christiansen
Owner
Bill Buesing 651-227-0644
Project Architect - W AI Continuum
Dahlheime.. Dist..ibuting
G..eg Dahlheime..
Owner
763-295-3347
Skip So..enson
Pope Associates
651-642-9200
Monticello Business Center Phase I & II
Mike Krutzig 763-295-2200
Owner SB24 LLC.
Faith Luthe..an Chu..ch, Becke..
Lowell Beihoffe.. 763-262-0062
Ownerls Construction Representative
Matt Hall 612-623-1800
Project Architect - Station 19 Architects
Zion Luthe..an Chu..ch, Buffalo
952-914-2477
Rick Johnson
Building Committee Chair
Dick B..ownlee 612-623-1800
Principal Architect - Station 19 Architects
Buffalo Public Wo..ks
Mel10n Auger
City Administrator
763-682-1181
Gayle Mack
Project Architect - SHE, Inc.
612-758-6781
Annandale New Town Market
Tim Fe....ell
Owner
320-274-3037
Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com
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INTEGRATED APPROACH
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Collage has participated in mixed-use developments
Successful development requires understanding
of the many aspects affecting the outcome.
Collage takes pride in establishing and managing
the overall process to meet the greatest potential.
and design utilizing both vertical and horizontal mixed-use
components. Our team offers not only design expertise, but
also development experience.
CARLSON PARK RESORT
The Carlson Companies began developing a new lifestyle liv-
ing prototype in Savannah, Georgia called The Carlson Park
Resort Communities that provided hotel style services to
residential master plans. These plans created a vision that es-
tablished a community feeling to create a unique resOIt style
experience. The Savannah plan provided over 2500 units of
mixed housing in townhomes, condominiums and single
family homes, along with a 180 key hotel, spa, restaurants and
retail all surrounding a newly created marina. The site which is
close proximity to the historic downtown captured the quali-
ties of historic Savannah.
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10/18/2007
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
Meetina 0 : ctober23, 007
AGENDA SECTION: Business Items ORIGINATING EXECUTIVE
NO: 5 DEPARTMENT: DIRECTOR
Community Development APPROVAL
ITEM: Approve Preliminary Development BY: Randy Schumacher BY:
Agreement between EDA and Tom Frattalone for DATE: October 18, 2007
the Burger King Redevelopment Site
fO 2
BACKGROUND:
Site History
The EDA acquired the Burger King site in 2004 for the purpose of redevelopment. The site
had been identified by the EDA as a redevelopment priority.
Preliminary Development Agreement
Tom Frattalone, owner of Frattalone Ace Hardware, met with City staff in the spring of
2007 to discuss the possible relocation of his hardware store, currently located near the
corner of 3ih Avenue and McKinley Street. As it is his oldest and smallest store, and his
lease will soon expire, Mr. Frattalone is considering options for relocation within his market
area. Staff reviewed with him the redevelopment areas the EDA had identified as priorities
and Mr. Frattalone decided that the former Burger King site best suits his needs.
Mr. Frattalone's proposes to build a 13,000 - 14,000-square foot retail store with an
adjacent 3,000 - 4,000-square foot garden center. Since his present lease expires on June
30,2008, Mr. Frattalone would like to move through the review process in a timely manner.
RECOMMENDATION: Staffs recommends approval of a Preliminary Development
Agreement between Tom Frattalone and the EDA.
RECOMMENDED MOTION: Move to Approve the Preliminary Development Agreement
between Tom Frattalone and the EDA; and furthermore, to authorize the President and
Executive Director to enter into an agreement for the same.
EDA ACTION:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
BURGER KING REDEVELOPMENT SITE
PRELIMINARY DEVELOPMENT AGREEMENT
THIS AGREEMENT, dated this 23rd day of October, 2007, by and between the Colnmbia
Heights Economic Development Authority, a body politic and corporate under the laws of
Minnesota (the "Authority") and Frattalone Hardware (the "Developer"):
WITNESSETH:
WHEREAS, the Authority desires to promote redevelopment of ceIiain propeIiy within
the City of Columbia Heights, which property is legally described in Exhibit A attached hereto
(the "Property"); and
WHEREAS, the Developer has requested the Authority to explore the use of certain
public assistance, financial and otherwise, to assist with such activities, hereafter referred to as
the "Redevelopment"; and
WHEREAS, the Authority has determined that it is in the Authority's best interest that
the Developer be designated sole developer of the PropeIiy during the term of this Agreement;
and
WHEREAS, the Authority and the Developer are willing and desirous to undertake the
Redevelopment if (i) a satisfactory agreement can be reached regarding the Authority's
commitment for public assistance necessm"y for the Redevelopment; (ii) satisfactory mortgage
mld equity financing, or adequate cash resources for the Redevelopment can be secured by the
Developer; mId (iii) the economic feasibility and soundness of the Redevelopment; and
(iv) satisfactory resolution of zoning, lmld use, site design, and engineering issues, and other
necessary preconditions have been determined to the satisfaction ofthe parties; and
WHEREAS, the Authority is willing to evaluate the Redevelopment and work towm"d all
necessary agreements with the Developer if the Developer agrees to reimburse the Authority for
its costs relating to the Redevelopment even if the Redevelopment is abandoned or necessary
agreements are not reached under the terms of this Agreement.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and
obligations set fmih herein, the pmiies agree as follows:
1. Negotiations between the pmiies shall proceed in ml attempt to fonnulate a
definitive development contract ("Contract") based on the following:
(a) the Developer's proposal (when submitted) together with any chmlges or
modifications required by the Authority;
SJB-26D554vl
CUD5-3D
(b) such documentation regarding economic feasibility of the Project as the
Authority may wish to undertake during the telm of this Agreement; and
(c) other tem1S and conditions of this Agreement.
2. It is the intention of the parties that this Agreement: (a) documents the present
understanding and connnitments of the parties; and (b) will lead to negotiation and execution of
a mutnally satisfactory Contract for the Redevelopment prior to the termination date of this
Agreement. The Contract (together with any other agreements entered into between the parties
hereto contemporaneously therewith) when executed, will supersede all obligations of the parties
hereunder.
3. During the term of this Agreement, the Developer shall:
(a) By December 15, 2007, submit a proposal to the Authority, which
proposal must show the location, size, and nature of the proposed Redevelopment,
including sample floor layouts, renderings, elevations, and other graphic or written
explanations of the Redevelopment. The proposal shall be accompanied by a preliminary
schedule for the stmting and completion of all phases of the Redevelopment.
(b) Submit an over-all cost estimate for the design and constmction of the
Redevelopment.
(c) Submit a final time sehedule for all phases of the Redevelopment.
(d) UndeItake and obtain such other preliminary economie feasibility stndies,
income and expense projections, and such other economic information as the Developer
may desire to further confirm the economic feasibility and soundness of the
Redevelopment.
(e) Submit to the Authority the Developer's finllilcing plan showing that the
proposed Redevelopment is financially feasible.
(f) Furnish satisfactory, financial data to the Authority evidencing the
Developer's ability to undeltake the Redevelopment.
4. During the term of this Agreement, the Authority agrees to:
(a) Commence the process necessary to undeltake such public assistance as is
necessary pursuant to the terms of the proposal.
(b) Proeeed to seek allnecessm'y infonnation with reglli'd to the anticipated
public costs associated with the Redevelopment.
(c) Estimate the Authority's level and method of fmancial pmticipation, if
any, in the Redevelopment and develop a financial plm1 for the Authority's pmticipation.
SJB-260554vl
CL20S-30
5. It is expressly understood that execution ffild implementation of the Contract shall
be subject to:
(a) A determination by the Authority in its sole discretion that its
undertakings are feasible based on (i) the projected tax increment revenues ffild any other
revenues designated by the Authority; (ii) the purposes and objectives of any tax
increment, development, or other plan created or proposed for the purpose of providing
financial assistance for the Redevelopment; and (iii) the best interests of the Anthority.
(b) A determination by the Developer that the redevelopment is feasible and
in the best interests of the Developer.
6. This Agreement is effective Ii-om the date hereof tln'ough 120 days, 2008. After
such date, neither party shall have any obligation hereunder except as expressly set fOl1h to the
contrary herein.
7. The Developer shall be solely responsible for all costs incurred by the Developer.
In addition, the Developer shall reimburse the Authority for the following costs:
(a) Upon execution of tlus Agreement, the Developer has deposited with the
Authority funds in the amount of $ , receipt of which the Authority hcreby
acknowledges. The Authority may apply such deposit to pay any "Authority Costs,"
which means: reasonable and necessary out-of pocket-costs incuned by the Authority
from and after date of executed agreement, in each case based on actual time spent in
connection with rendering assistance and advice to the Authority as evidenced by
itenuzed bills and invoices for (i) the Authority's financial advisor in connection with the
Authority's financial participation in redevelopment of the Propel1y, (ii) the Authority's
legal counsel in cormection with negotiation and drafting of this Agreement and any
related agreements or documents, and any legal services related to the Authority's or
City's participation in redevelopment of the Property; (iii) any appraiser retained by the
Authority in connection with conveyance of any pOl1ion of the Propel1y by the Authority
to the Developer or in c011llection with detemlination of the level of public assistance;
and (iv) consultants retained by the Authority for plarming, environmental review, and
traffic engineering for development of the Propel1y. At Developer's request, but no more
often than monthly, the Authority will provide Developer with a written rep011 on Cllnent
and anticipated expenditures for Authority Costs, including invoices or other comparable
evidence.
(b) If at any time during the ten11 of this Agreement the Authority
determines that the amounts deposited by Developer are insufficient to pay Authority
Costs, the Authority may notify the Developer in ,,>,riting as to any additional amount
required to be deposited. The Developer must deposit such additional funds within 20
days after receipt of the Authority's notice.
(c) Upon termination of tlus Agreement in accordance with its telms,
the Authority will return to the Developer the balance of any funds deposited under this
section that are on hand as of the date of receipt of the notice of termination, and less any
SJB-260554vl
CL205-30
Authority Costs incuned through the date of receipt of the notice oftennination. For the
pmposes of this paragraph, Authority Costs are considered to be incuncd if they have
been paid, relate to services performed, or are payable under a contract entered into, on or
before the date of receipt of the notice of termination.
This Section 7 shall survive termination of this Agreement and shall be binding on the
Developer regardless of the enforceability of any other provision of tlus Agreement.
8. This Agreement may be temlinated upon 5 days written notice by the Authority to
the Developer if:
(a) an essential precondition to the execution of a contract cannot be met; or
(b) if, in the sole discretion of the Authority, an impasse has been reached in
the negotiation or implementation of allY materialtelm or condition of this Agreement or
the Contract; or
(c) The Authority detemlines that its Administrative Costs will exceed the
alno,-!nt initially deposited for such purpose under Section 7(b), alld tile Developer does
not deliver additional security to the Authority pursuant to Section 7(b) of this
Agreement.
If the Authority temlinates the Agreement under this Section 8, the Developer shall
remain liable to the Authority under Section 7(b) of this Agreement for Administrative Costs
incun'ed by the Auiliority through the effective date oftemunation.
9. The Developer is designated as sole developer of the Propelty during the telm of
this Agreement. The Authority makes no representations or WalTallties as to control, access or
ownership of any pOltion of the Propelty, but agrees that during the tenn of tlus Agreement the
Authority will not enter into agreements with any other pmty to facilitate redevelopment of ilie
Property .
10. In the event that the Developer, its heirs, successors or assigns, fail to comply
with any of the provisions of tlus Agreement, the Authority may proceed to enforce tlus
Agreement by appropriate legal or equitable proceedings, or other similar proceedings, and the
Developer, its heirs, successors or assigns, agree to pay all costs of such enforcement, including
reasonable attorneys' fees.
II.
jurisdiction,
Agreement.
If any pOltion of this Agreement is held invalid by a court of competent
sueh decision shall not affect the validity of any remaining pOltion of ilie
12. In the event allY covenant contained in tlus Agreement should be breached by one
pal'ty and subsequently waived by allother palty, such waiver shall be limited to the particular
breach so waived and shall not be deemed to waive any other eoncunent, previous or subsequent
breach. This Agreement may not be amended nor any of its terms modified except by a writing
authorized and executed by all parties hereto.
SJB-260554vl
CL205-30
13.
sufficiently
personally:
Notice or demand or other conm1Unication between or among the patiies shall be
given if sent by mail, postage prepaid, retUl11 receipt requested or delivered
(a) As to the Authority:
Columbia Heights Economic Development Authority
590 40th Avenue NE
Columbia Heights, MN 55421
Attn: Randy Schumacher
(b) As to the Developer:
Tom Frattalone
2261 37th Ave NE
Columbia Heights, MN 55421
14. This Agreement may be executed simultaneously in any number of counterpatis,
all of which shall constitute one and the same instrument.
15. This Agreement shall be govemed by and construed in accordat1ce with the laws
of the state of Milmesota. Any disputes, controversies, or claims arising out of this Agreement
shall be heard in the state or federal comis of Milmesota, and all parties to this Agreement waive
any objection to the jurisdiction of these comis, whether based on convenience or otherwise.
16. The Developer hereby agrees to protect, defend and hold the Authority and its
officers, elected and appointed officials, employees, administrators, cOlllli1issioners, agents, at1d
representatives hatmless from at1d indemnified against at1Y atld all loss, cost, fines, charges,
damage and expenses, including, without limitation, reasonable attomeys fees, consultant and
expeli witness fees, at1d travel associated therewith, due to claims or demat1ds of any kind
whatsoever arising out of (i) the development, marketing, sale or leasing of all or any pati of the
Propeliy, including, without limitation, any claims for any lien imposed by law for services,
labor or materials fumished to or for the benefit of the Propeliy, or (ii) any claim by the state of
Minnesota or the Minnesota Pollution Control Agency or any other person pertaining to the
violation of any pellnits, orders, decrees or demands made by said persons or with regat'd to the
presence of at1y pollutant, contaminant or hazardous waste on the Propeliy; and (iii) or by reason
of the execution of this Agreement or the performance of this Agreement. The Developer, and
the Developer's successors or assigns, agree to protect, defend and save the Authority, and its
officers, agents, and employees, hatmless from all such claims, demat1ds, damages, at1d causes of
action and the costs, disbursements, and expenses of defending the same, including but not
limited to, attorneys fees, consulting engineering services, and other technical, administrative or
professional assistance. TillS indemnity shall be continuing and shall survive the perfOllnat1Ce,
telmination or cancellation of this Agreement. Nothing in this Agreement shall be construed as a
limitation of or waiver by the Authority of any inl111Unities, defenses, or other limitations on
liability to which the Authority is entitled by law, including but not limited to the maximum
monetary linllts on liability established by Mill1lesota Statutes, Chapter 466.
SJB-260554vl
CUOS-30
17. The Developer, for itself, its attorneys, agents, employees, former employees,
insurers, heirs, administrators, representatives, successors, and assigns, hereby releases and
forever discharges the Authority, and its attorneys, agents, representatives, employees, forn1er
employees, insurers, heirs, executors and assigns of and fi.om any and all past, present or future
claims, demands, obligations, actions or causes of action, at law or in equity, whether arising by
statute, common law or otherwise, and for all claims for damages, of whatever kind or nature,
and for all claims for attorneys' fees, and costs and expenses, including but not limited to all
claims of any kind arising out of the negotiation, execution, or perfonnance of this Agreement
between the parties.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
SJB-260554vl
CL20S-30
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed
in its name and behalf and its seal to be duly affixed hereto and the Developer has caused this
Agreement to be duly executed as of the day and year tirst above written.
IDEVELOPER]
By
Its
By
Its
SJB-260554vl
CL205-30
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
By
Its President-Gary L. Peterson
By
Its Executive Director- Walter R. Fehst
Date:
SJB-260554\' 1
eL20S-30
3939 CENTRAL AVE
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COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ee Inq 0 : co er ,
AGENDA SECTION: Business Items ORIGINATING EXECUTIVE
NO: 6 DEPARTMENT: DIRECTOR
Community Development APPROVAL
ITEM:Approve Preliminary Development BY: Randy Schumacher BY:
Agreement between EDA and C.RO.S. DATE: October 18, 2007
Companies LLC for the Beecroft
Redevelopment Site
M t" f 0 t b 23 2007
BACKGROUND:
Site History
The City Council designated the Beecroft Redevelopment Site near the intersection of
3ih and Central Avenues, and a gateway to the city, as a priority when it drafted
redevelopment goals for the City. The City later obtained Community Development
Block Grants to acquire two non-conforming single-family homes and demolished them.
In 2003, the City acquired the adjacent Beecroft building at 3710 Central Avenue, and
leased it for a number of years to the Don-Murnane Wigs. Upon retirement in the fall of
2006, the business vacated the building.
Preliminary Development Agreement
Chris Little and his father, Richard, of C.RO.S. Companies LLC, and Loucks
Associates (a planning and design firm) have been meeting with city staff for the past
few months to discuss design options for a 9,600-square foot building. The developer
is working on a sources and uses statement, to determine the financial feasibility of the
project and has also obtained and executed a proposal to purchase the Chutney
Restaurant and parking lot adjacent to the Beecroft building, from its present owner,
Julio Punjani.
At this point in the project, the developers would like to enter into a Preliminary
Development Agreement to assure themselves that the EDA will not enter into an
agreement with another party for redevelopment of the property.
RECOMMENDATION: Staff recommends Approval of the Preliminary Development
Agreement between C.R.O.S. Companies LLC and the EDA.
RECOMMENDED MOTION: Move to Approve the Preliminary Development Agreement
between C.RO.S. Companies LLC and the EDA for the Beecroft Redevelopment Site;
and furthermore, to authorize the President and Executive Director to enter into an
agreement for the same.
EDA ACTION:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
BEECROFT REDEVELOPMENT SITE
PRELIMINARY DEVELOPMENT AGREEMENT
THIS AGREEMENT, dated tins 23rd day of October, 2007 , by and bet\veen the
Columbia Heights Economic Development Authority, a body politic and corporate under the
laws of Minnesota (the "Authority") and C.R.O.S. CompaInes LLC (the "Developer"):
WITNESSETH:
WHEREAS, the Authority desires to promote redevelopment of certain property within
the City of Columbia Heights, which property is legally described in Exlnbit A attached hereto
(the "Propelty"); and
WHEREAS, the Developer has requested the Authority to explore the use of certain
public assistance, financial and otherwise, to assist with such activities, hereafter referred to as
the "Redevelopment"; aIld
WHEREAS, the Authority has detennined that it is in the Authority's best interest that
the Developer be designated sole developer of the Propeliy during the term of this Agreement;
and
WHEREAS, the Authority and the Developer are willing and desirous to undeliake the
Redevelopment if (i) a satisfactory agreement can be reached regarding the Authority's
commitment for public assistance necessary for the Redevelopment; (ii) satisfactory mOltgage
and equity financing, or adequate cash resources for the Redevelopment can be secured by the
Developer; aIld (iii) the economic feasibility and soundness of the Redevelopment; and
(iv) satisfactOlY resolution of zoning, land use, site design, aIld engineering issues, and other
necessary preconditions have been detelmined to the satisfaction of the parties; and
WHEREAS, the Authority is willing to evaluate the Redevelopment and work toward all
necessary agreements with the Developer if the Developer agrees to reimburse the Authority for
its costs relating to the Redevelopment even if the Redevelopment is abandoned or necessary
agreements are not reached under the terms of this Agreement.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants aIld
obligations set forth herein, the paIiies agree as follows:
1. Negotiations between the paliies shall proceed in an attempt to formulate a
definitive development contract ("Contract") based on the following:
(a) the Developer's proposal (when submitted) together '.vith any changes or
modifications required by the Authority;
SJB-260554vl
CL205-30
(b) such documentation regmding economic feasibility of the Project as the
Authority may wish to undertake during thc ten11 of this Agreement; and
(c) other terms and conditions of this Agreement.
2. It is the intention of the patties that this Agreement: (a) documents the present
understat1ding and commitments of the parties; and (b) will lead to negotiation and execution of
a mutually satisfactory Contract for the Redevelopment prior to the termination date of this
Agreement. The Contract (together with any other agreements entered into between the patties
hereto contemporat1eously therewith) when executed, will supersede all obligations of the parties
hereunder.
3. During the term of this Agreement, the Developer shall:
(a) By December 15, 2007, submit a proposal to the Authority, which
proposal must show the location, size, and nature of the proposed Redevelopment,
including sample floor layouts, renderings, elevations, and other graphic or written
explanations of the Redevelopment. The proposal shall be accompatued by a preliminaty
schedule for the starting and completion of all phases of the Redevelopment.
(b) Submit an over-all cost estin1ate for the design and constlUction of the
Redevelopment.
(c) Submit a final time schedule for all phases of the Redevelopment.
(d) Undeltake and obtain such other preliminmy economic feasibility studies,
income and expense projections, and such other economic information as the Developer
may desire to further confin11 the economic feasibility at1d soundness of the
Redevelopment.
(e) Submit to the Authority the Developer's financing plan showing that the
proposed Redevelopment is financially feasible.
(f) Furnish satisfactory, fina11cial data to the Authority evidencing the
Developer's ability to undertake the Redevelopment.
4. During the term of this Agreement, the Authority agrees to:
(a) C0111111ence the process necessary to undeltake such public assistance as is
necessary pursuant to the terms of the proposal.
(b) Proceed to seek all necessary information with regard to the anticipated
public costs associated with the Redevelopment.
(c) Estimate the Authority's level and method of finat1cial participation, if
any, in the Redevelopment and develop a financial plan for the Authority's patticipation.
SJB-260554vl
CL205-30
5. It is expressly understood that execution and implementation of the Contract shall
be subject to:
(a) A determination by the Authority in its sole discretion that its
undeliakings are feasible based on (i) the projected tax increment revenues and any other
revenues designated by the Authority; (ii) the purposes and objectives of any tax
increment, development, or other plan created or proposed for the purpose of providing
financial assistance for the Redevelopment; and (iii) the best interests of the Authority.
(b) A determination by the Developer that the redevelopment is feasible and
in the best interests of the Developer.
6. This Agreement is cffective from the date hereof through 120 days, 2008. After
such date, neither party shall have any obligation hereunder except as expressly set forth to the
contrary herein.
7. The Developer shall be solely responsible for all costs inculTed by the Developer.
In addition, the Developer shall reimburse the Authority for the following costs:
(a) Upon execution of this Agreement, the Developer has deposited with the
Authority funds in the amount of $ , receipt of which the Authority hereby
acknowledges. The Authority may apply such deposit to pay any "Authority Costs,"
which means: reasonable and necessary out-of pocket-costs inculTed by the Authority
from and after date of executed agreement, in each case based on actual time spent in
cOlUlection with rendering assistance and advice to the Authority as evidenced by
itemized bills and invoices for (i) the Authority's financial advisor in cOilllection with the
Authority's financial paliicipation in redevelopment of the Property, (ii) the Authority's
legal counsel in connection with negotiation and drafting of this Agreement and allY
related agreements or documents, and any legal services related to the Authority's or
City's paliicipation in redevelopment of the Propeliy; (iii) any appraiser retained by the
Authority in connection with conveyance of any pOltion of the Property by the Authority
to the Developer or in connection with determination of the level of public assistance;
and (iv) consultants retained by the Authority for planning, environnlental review, alld
traffic engineering for development of the Property. At Developer's request, but no more
often than monthly, the Authority will provide Developer with a written rcpOlt on cun'ent
and anticipated expenditures for Authority Costs, including invoices or other comparable
evidence.
(b) If at any time during the term of this Agreement the Authority
determines that the amounts deposited by Developer are insufficient to pay Authority
Costs, the Authority may notify the Developer in writing as to any additional amount
required to be deposited. The Developer must deposit such additional funds within 20
days after receipt of the Authority's notice.
(c) Upon telmination of this Agreement in accordance with its telms,
the Authority will return to the Developer the balallce of any funds deposited under this
section that are on hand as of the date of receipt of the notice of ternunation, and less any
518-260554vl
CL205-3D
Authority Costs incurred through the datc of receipt of the notice of termination. For thc
purposes of this paragraph, Authority Costs are considered to be incurred if they have
been paid, relate to services performed, or are payable under a contract entered into, on or
before the date of receipt of the notice of termination.
This Section 7 shall survive termination of this Agreement and shall be binding on the
Developer regardless of the enforceability of any other provision of this Agreement.
8. This Agreement may be terminated npon 5 days written notice by the Authority to
the Developer if:
(a) an essential precondition to the execution of a contract cannot be met; or
(b) if, in the sole discretion of the Authority, an impasse has been reached in
the negotiation or implementation of any material term or condition of this Agreement or
the Contract; or
(c) The Authority determines that its Administrative Costs will exceed the
amOlll1t initially deposited for such purpose under Section 7(b), and the Developer does
not deliver additional security to the Authority pursuant to Section 7(b) of this
Agreement.
If the Authority terminates the Agreement under this Section 8, the Developer shall
remain liable to the Authority under Section 7(b) of this Agreement for Administrative Costs
incurred by the Authority through the effective date oftermillation.
9. The Developer is designated as sole developer of the Propelty during the term of
this Agreement. The Authority makes no representations or warranties as to control, access or
ownership of any pOltion of the Propelty, but agrees that during the teml of tlus Agreement the
Authority will not enter into agreements with any other party to facilitate redevelopment of the
Propmty.
10. In the event that the Developer, its heirs, successors or assigns, fail to comply
with any of the provisions of tlus Agreement, the Authority may proceed to enforce tlus
Agreement by appropriate legal or equitable proceedings, or oilier similar proceedings, and the
Developer, its heirs, successors or assigns, agree to pay all costs of such enforcement, including
reasonable attorneys' fees.
11.
jurisdiction,
Agreement.
If any pOltion of this Agreement is held invalid by a COUlt of competent
such decision shall not affect the validity of any remailung pOltion of the
12. ill the event any covenant contained in this Agreement should be breached by one
pmty and subseqnently waived by another party, snch waiver shall be limited to the pmticulm'
breach so waived mld shall not be deemed to waive any other concUlTent, previous or subsequent
breach. This Agreement may not be amended nor any of its tenns modified except by a writing
authorized and executed by all pmties hereto.
SJB-260554vl
CUDS-3D
13.
sufficiently
personally:
Notice or demand or other communication bctwecn or among thc paltics shall be
given if sent by mail, postage prepaid, return rcceipt requested or delivered
(a) As to the AuthOlity:
Columbia Heights Economic Development Authority
590 40th Avenue NE
Columbia Heights, MN 55421
Attn: Randy Schumacher
(b) As to the Developer:
C.R.O.S. Compallies LLC
552 Lomianki Lalle
Columbia Heights, MN 55421
14. TillS Agreement may be cxecuted simultaneously in allY number of counterpmis,
all of which shall constitute one and the same instrument.
15. This Agreement shall be governed by alld construed in accordance with the laws
of the state of Minnesota. Any disputes, controversies, or claims arising out of tillS Agreement
shall be heard in the state or federal courts of Mimlesota, and all paltics to this Agreement waive
any objection to the jurisdiction of these courts, whether based on convenience or otherwise.
16. The Developer hereby agrees to protect, defend and hold the Authority and its
officers, elected and appointed officials, employees, administrators, commissioners, agents, and
represcntatives harmless fi'om alld indemnified against any alld all loss, cost, fines, charges,
dalnage and expenses, including, without limitation, reasonable attomeys fees, consultant alld
expert witness fees, and travel associated therewith, due to claims or demallds of any kind
whatsoever arising out of (i) the development, marketing, sale or leasing of all or any part of the
Property, including, without limitation, auy claims for any lien imposed by law for services,
labor or materials furnished to or for the benefit of the Property, or (ii) any claim by the state of
Minnesota or the Mill11esota Pollution Control Agency or allY oilier person peltaining to the
violation of any permits, orders, decrees or demands made by said persons or with regard to the
presence of any pollutant, contaminant or hazardous waste on the Propelty; and (iii) or by reason
of the execution of this Agreement or the performance of this Agreement. The Developer, and
the Developer's successors or assigns, agree to protect, defend alld save the Authority, and its
officers, agents, and employees, hannless from all such claims, demands, damages, and causes of
action alld the costs, disbursements, and expenses of defending the same, including but not
limited to, attorneys fees, consnlting engineering services, and other technical, admilllstrative or
professional assistance. TIllS indemlllty shall be continuing and shall survive the performance,
termination or cancellation of this Agreement. Nothing in tillS Agreement shall be construed as a
litnitation of or waiver by the Authority of any inmmnities, defenses, or other litnitations on
liability to which the Authority is entitled by law, including but not linllted to the maximnm
monetary limits on liability established by Mill11esota Statutes, Chapter 466.
SJB-260554vl
CL20S-30
17. The Developer, for itse1t: its attomeys, agents, employees, fonner employees,
insurers, heirs, administrators, representatives, successors, and assigns, hereby releases and
forever discharges the Anthority, and its attomeys, agents, representatives, employees, fonner
employees, insurers, heirs, executors and assigns of and from any and all past, present or future
claims, demands, obligations, actions or causes of action, at law or in equity, whether arising by
statute, common law or otherwise, and for all claims for damages, of whatever kind or nature,
and for all claims for attorneys' fees, and costs and expenses, including but not limited to all
claims of any kind arising out of the negotiation, execution, or perfornlance of this Agreement
between the parties.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
SJB-260554vl
CL205-30
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed
in its name and behalf and its seal to be duly affixed hereto and the Developer has caused this
Agreement to bc duly executed as of the day and year first above written.
[DEVELOPER]
By
Its
By
Its
SJB-260554vl
CL205-30
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
By
Its President-Gary 1. Peterson
By
Its Executive Director- Walter R. F ehst
Date:
SJB-260554vl
CL205-30
37TH & CENTRAL AVENUE
REDEVELOPMENT AREA
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COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ee Inq 0 : coer ,
AGENDA SECTION: Business Items ORIGINATING DEPARTMENT: EXECUTIVE
NO: 7 Community Development DIRECTOR
APPROVAL
ITEM: Approve Demolition of Beecroft Building BY: Randy Schumacher BY:
at 3710 Central Avenue DATE: October 18, 2007
M r f 0 t b 23 2007
BACKGROUND:
Site History
The City Council designated the Beecroft Redevelopment Site near the intersection of 3ih
and Central Avenues, and a gateway to the city, as a priority when it drafted
redevelopment goals for the city. The City later obtained grants to acquire two non-
conforming single-family homes and demolished them. In 2003, the City acquired the
adjacent Beecroft building at 3710 Central Avenue, and leased it for a number of years to
Don-Murnane Wigs. The business owners vacated the building upon retirement in the fall
of 2006 and it has been vacant since then.
Demolition of Beecroft Building
The retail building at 3710 Central Avenue has been vacant since the fall of 2006 and the
City has been granted $55,000 in Community Development Block Grant (CDBG) funds for
its demolition. With a leaky roof and unstable foundation, the building is in poor condition.
Sitting vacant, the property remains a liability for the City.
On October 17,2007, City staff received the following four quotes for the demolition of the
building:
1.
2.
3.
4.
Frattalone Inc.
Veit Inc.
Rachel Contracting
Belair Excavating
$23,600
$23,859
$29,625
$29,830
Frattalone Inc. provided the lowest quote of $23,600. The contractor will remove the entire
building, as well as all bituminous and concrete paving, and landscaping. The property will
be graded and seeded.
RECOMMENDATION: Staff recommends accepting the low quote for demolition of the
Beecroft building at 3710 Central Avenue.
RECOMMENDED MOTION: Move to Approve the low quote for demolition of the
Beecroft building at 3710 Central Avenue from Frattalone Inc. in an amount not to
exceed $23,600.
EDA ACTION:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
Meeting of: October 23, 2007
AGENDA SECTION: Business Items ORIGINATING DEPARTMENT: CITY MANAGER'S
NO: 8 Community Development APPROVAL
ITEM: Industrial Park Groundwater BY: Randy Schumacher BY:
Investigation Report of Contaminated DATE: October 18, 2007
Soil
BACKGROUND: After three long years, the EDA staff has completed the clean up of the Industrial
Park. It has taken over $4,500,000 of grant funding to accomplish the removal of over 138,000 cubic
yards of contaminated soil. To date 139 units have been built with an additional 32 units under
construction in Phase II.
The final step in the clean up process, as required by the Minnesota Pollution Control Agency is to
conduct a Groundwater Investigation Report of the contaminated Industrial Park.
In order to accomplish that task, ProSource will meet with staff from the Minnesota Pollution Control
Agency to review the existing data, discuss our approach and determination for well locations.
ProSource will also prepare access agreements and coordinate with landowners for well installation.
A total of five monitoring wells will have to be installed as part of this investigation. Drilling services
will be provided by the Traut Well Company of Waite Park, Minnesota. All work will be done in
accordance with Minnesota Department of Health Well Construction Code, Minnesota Rule 4725. A
geologist from ProSource will provide over site during all soil boring and well installation activities.
Following well development, ProSource will conduct two rounds of base line sampling to evaluate
groundwater quality. ProSource personnel will also survey each well to provide vertical and
horizontal control.
Following completion of fieldwork, ProSource will prepare a report for submittal to the Minnesota
Pollution Control Agency. The report will include a discussion of field methods, geologic/hydro
geologic conditions and analytical results. Applicable tables, figures, and/or supporting data will be
included.
Based on the above scope of work, the cost to complete this project is $84,748. Of this, $45,568 will
cover the cost of drilling services. The remaining $39,180 includes all labor, equipment and
expenses related to coordination with subcontractors, over site, well development, base line
sampling, surveying, reporting, project management and liaison with the Minnesota Pollution Control
Agency.
The entire cost for this scope of work will be funded by Community Development Block Grant funds
as well as Metropolitan Council grant dollars that have already been secured.
RECOMMENDATION: Staff recommends approval of the Industrial Park Groundwater Investigation
Report of Contaminated Soil scope of work and contract amount of $84,748.
RECOMMENDED MOTION: Move to Approve the ProSource Industrial Park Groundwater
Investigation Report of contaminated soil scope of work and contract, not to exceed $84,748 and
furthermore, to authorize the President and Executive Director to enter into an agreement for the
same.
EDA ACTION:
Supplemental Ground Water Investigation
Columbia Heights Industrial Park - Columbia Heights, Minnesota
Page 3
STANDARD TERMS AND CONDITIONS
1. STANDARD OF CARE. Services shall be performed in accordance with the standard of professional
practice ordinarily exercised by the applicable profession at the time and within the locality where the Services are
performed. Professional Services arc not subject to. and ProSource can not provide, any warranty or guarantee,
express or implied, including warranties or guarantees contained in any uniform commercial code. Any such
warranties or guarantees contained in any purchase orders, requisitions or notices to proceed issued by a client are
specifically objected to.
2. CHANGE OF SCOPE. The scope of Services set forth in this Agreement is based on facts known at the
time of execution of this Agreement, including, if applicable, information supplied by Client. For some projects the
scope may not be fully definable during the initial phases. As the Project progresses, facts discovered may indicate
tbat scope must be redefined. ProSource will promptly provide Client with an amendment to this Agreement to
recognize such change, which shall be deemed approved if not objected to within 15 days of receipt by Client.
3. SAFETY. ProSource has established and maintains corporate programs and procedures for the safety of its
employees. Unless specifically included as a service to be provided as a service under this Agreement, ProSource
specifically disclaims any authority or responsibility for general job site safety and safety of persons otber than
ProSource employees.
4. DELAYS. If events beyond the control of Client or ProSource, including, but not limited to, fire, flood,
ex-plosion. riot. strike, war, process shutdov,,'11. acts of God or the public enemy. and act or regulation of any
government agency. result in delay to any schedule established in this Agreement, such schedule shall be amended
to the extent necessary to compensate for such delay. In the event such dclay exceeds 90 days, ProSource shall be
entitled to an equitable adjustment in compensation.
In the event that the project is delayed by Client and such delay exceeds 30 days, ProSoUice sbaH be entitled to an
extension of time equal to the delay and an equitable adjustment in compensation.
5. TERMINATION / SUSPENSION. Either party may terminate this Agreement npon 30 days written
notice to the other party. Client shall pay ProSource for all Services, including any expenses, incurred prior to
termination.
In the event that either party defaults in its obligations under this Agreement (including Clients obligation to make
the payments required hereunder), the non-defaulting party may. after 7 days written notice stating its intention to
suspend performance under the Agreement if cure of such default is not commenced and diligently continued, and
failure of the defaulting party to commence cure within such time limit and diligently continue. suspend
perfonnance under this Agreement.
6. OPINIONS OF CONSTRUCTION COST. Any opinion of construction costs prepared by ProSource
is supplied for the general guidance of the Client only. Since ProSource has no control over the competitive bidding
or market conditions, ProSource cannot guarantee the accuracy of such opinions as compared to contract bids or
actual costs to client.
7. RELATIONSHIP WITH CONTRACTORS. ProSource shall serve as Client's professional
representative for the Services, and may make recommendations to Client concerning actions relating to Client's
contractors. but ProSource specifically disclaims any authority to direct or supervise the means, methods,
techniques. sequences, or procedures or construction selected by Client's contractors.
8. CONSTRUCTION/CONTRACTOR OVERSIGHT. For projects involving constructiou or
contractor oversight, Clicnt acknowledges tbat under generally accepted professional practice, interpretations of
construction documents or field plans in the field are normally required, and that performance of construction-related
services by tbe design professional for the project permits errors or omissions to be identified and corrected at
comparatively low cost. Client agrees to bold proSource barmless from any claims resulting from performance of
construction-related or contractor oversight services by persons other than ProSource.
Pro Source Technologies, Inc.
October 4, 2007
Supplemental Ground Water Investigation
Columbia Heights Industrial Park - Columbia Heights, Minnesota
Page 4
9. INSURANCE. ProSource will maintain insurance coverage for Comprehensive General, Automobile and
Worker's Compensation in amounts in accordance with legal, and ProSource's business, requirements. Certificates
evidencing such coverage will be provided to Client upon request.
10. INDEMNITIES. To the fullest extcnt pennitted by law, ProSource shall indemnify and save harmless Client
from and against loss, liability, and damages sustained by Client, its agents, employees, and representatives by
reason of injury or death to persons or damage to tangible property to the extent caused directly by the willful
misconduct or failure to adhere to the standard of care described in Paragraph 1 above of ProSourcc, its agent or
employees.
To tbe fullest extent permitted by law, Client shaH defend, indemnify, and save hannless ProSouTee, its agents,
employees, and representatives from and against loss, liability, and damages (including reasonable litigation costs)
arising from or relating to claims for injUlY or death to persons, damages to tangible property, or other losses, alleged
to be caused by any of the following: (a) any ~mbstance, condition, element, or material or any combination of the
foregoing (i) produced, emitted or released from Project (ii) tested by ProSource under this Agreement, or (iii) used
or incorporated by ProSouree in the Services; or (b) operation or management of the Project. Client also agrees to
require its construction contractor, if any, to include ProSource as an indemnitee under indemnification obligation to
Client.
11. LIMITATIONS OF LIABILITY. No employee or agent of ProSource shall have individual liability to
Client.
Client agrees that, to the fullest extent permitted by law, ProSource's liability to Client for any and all injuries,
clairns,losscs, expenses or damages whatsoever arising out of or in any way related to the Project or this Agreement
from any causes including, but not limited to, ProSource's negligence, errors, omissions, strict liability, or breach of
contract shall not exceed the total compensation received by ProSource under this Agreement. If CHent desires a
limit of liability greater than tbat provided above, Client and ProSourcc shall include in Part III of this Agreement
the amount of such limit and the additional compensation to be paid to ProSource for assumption of such additional
risk.
IN NO EVENT AND UNDER NO CIRCUMSTANCES SHALL PROSOURCE BE LIABLE TO CLIENT FOR
CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES.
12. ACCESS. Client shall provide ProSource safe access to any premises necessary for ProSouree to provide
services.
13. REUSE OF PROJECT DELIVERABLES. Reuse of any documents or other deliverables, including
electronic media, pertaining to the Project by Client for any purpose other than that for which such documents or
deliverables were originally prepared, or alteration of such documents or deliverables without written verification or
adaptation by ProSouree for the specific purpose intended, shall be at the Client's risk. Client agrees to defend,
indemnify, and hold harmless ProSource from all claims, damages~ and expenses (including reasonable litigation
costs), arising out of such reuse or alteration by Client or others acting through Client.
14. AMENDMENT. This Agreement, upon execution by both parties hereto, can be amcnded only by a writteu
instrument signed by both parties.
15. ASSIGNMENT. Except for assignments (a) to entities which control, or are controlled by, tbe parties bereto
or (b) resulting from operation of law, the rights and obligations of this Agrcement cannot be assigned by eitber
party without written pennission of the other party. This Agreement shall be hinding upon and inure to the benefit
of any pennitted assigns.
16. STATUTES OF LIMITATION. To the fullest extent pennitted by law, parties agree that, except for
indemnification, the time period for bringing claims under this Agreement shall expire one year after Project
completion.
ProSource Technologies, Inc.
October 4, 2007
Supplemental Ground Water Investigation
Columbia Heights Industrial Park - Columbia Heights, Minnesota
Page 5
17. PREVAILING PARTY LITIGATION COSTS. In the event any actions are brougbt to enforce tbis
Agreement, the prevailing party shall be entitled to collect its litigation costs from the other party.
18. NO WAIVER. No waiver by eitbcr party of any default by the other party in the performance of any particular
section of this Agreement shall invalidate any other section of this Agreement or operate as a waiver of any future
default, whether like or different in character.
19. NO THIRD-PARTY BENEFICIARY. Nothing contained in this Agreement, nor the performance of
the parties hereunder, is intended to benefit, nor shall inure to the benefit of, any third party, including Client1s
contractors, if any.
20. SEVERABILITY. TIle various terms, provisions and covenants herein contained shall be deemed to be
separate and severable. and the invalidity or unenforceability of any of them shall not affect or impair the validity or
enforceability of the remainder.
21. AUTHORITY. The persons signing tbis Agreement warrant that they bave the authority to sign as, or on
behalf of, the party for whom they are signing.
ProSource Technologies, Inc.
October 4, 2007
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
eetlnq 0 cto er 23,
AGENDA SECTION: Business Items ORIGINATING EXECUTIVE
NO: 9 DEPARTMENT:EDA DIRECTOR
APPROVAL
ITEM: Adopt Resolution 2007-21 and BY: Robert Streetar BY:
2007 -22, EDA Budget for 2008 DATE: October 18, 2007
M
fOb
2007
BACKGROUND:
This memorandum presents the proposed 2008 Economic Development Authority (EDA) budget.
The focus of the EDA since 2002 has been redevelopment of specific areas and the improvement
of the housing stock.
The EDA budget for 2008 is $274,863. The budget allows the continued implementation of the
EDA's priorities related to redevelopment, and housing. The EDA raises this amount through two
levies. The EDA levy raises $78,622, and the HRA levy raises $196,241. These levies fund the
authority staffing and supplies. Subsequently, the EDA must:
1. Pass a resolution approving and recommending the EDA Budget of $274,863 and a levy
of $78,622 to the City Council for approval.
2. Pass a resolution approving and levying, subject to City Council approval, the special
benefit levy of $196,241.
RECOMMENDATION: Staff recommends Adoption of EDA Resolutions 2007-21 and 2007-22,
adopting the 2008 budget and levies, subject to approval by the City Council.
RECOMMENDED MOTIONS:
Motion: Move to adopt EDA Resolution 2007-21, being a Resolution of the Columbia Heights
EDA adopting the 2008 Budget of $274,863 and a levy of $78,622 and recommending approval of
the same to the City Council.
Motion: Move to adopt EDA Resolution 2007-22, being a Resolution of the Columbia Heights
EDA approving a special benefit levy of $196.241, and recommending the same to the City
Council.
EDA ACTION:
H:\Consent 2007\EDA Budget Resolutions
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR COLUMBIA HEIGHTS
EDA RESOLUTION 2007-21
RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR
COLUMBIA HEIGHTS (EDA) ADOPTING A BUDGET AND SETTING THE EDA LEVY.
BE IT RESOLVED By the Columbia Heights Economic Development Authority (EDA) of
Columbia Heights, Minnesota as follows:
WHEREAS, the Columbia Heights City Council established the Columbia Heights
Economic Development Authority January 8, 1996 pursuant to Minnesota Statutes 469.090
to 469.1081; and
WHEREAS, the City Council has given to the EDA the responsibility for all development
and redevelopment projects and programs; and
WHEREAS, the EDA is authorized under State Statutes, Section 469.107 to levy a tax on
its area of operation for the purposes authorized under State Statues 469.090 to 469.1 081,
subject to consent by the City Council.
NOW, THEREFORE BE IT RESOLVED BY THE EDA FOR THE CITY OF
COLUMBIA HEIGHTS, MINNESOTA THAT:
1. The EDA adopts and recommends to the City Council for approval a budget of
$274.863 for year 2008.
2. The EDA adopts and recommends to the City Council for approval a levy of $78.622
for year 2008.
The Executive Director is instructed to transmit a copy of this resolution to the City
Manager and Finance Director/City Clerk of the City of Columbia Heights, Minnesota.
APPROVED THIS_ DAY OF
MOTION BY:
SECONDED BY:
ROLL CALL: AYES:
NAYS:
,2007.
Attest by:
Walter R. Fehst, Executive Director
Gary L. Peterson, President
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2007-22
AUTHORIZING THE LEVY OF
A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A BUDGET FOR FISCAL YEAR 2008
WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.1081 ("EDA
Act") the City of Columbia Heights ("City") created the Columbia Heights Economic
Development Authority (the "EDA"); and
WHEREAS, pursuant to City Resolution 2001-62 and Ordinance No. 1442, the City
Council granted to the EDA all powers and duties of a housing and redevelopment
authority under the provisions of Minnesota Statutes, Sections 469.001 to 469.047 (the
"HRA Act"), except certain powers that are allocated to the Housing and Redevelopment
Authority in and for the City of Columbia Heights (the "HRA"); and
WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the EDA and
HRA, together, to levy and collect a special benefit levy of up to .0144 percent of taxable
market value in the City upon all taxable real property within the City; and
WHEREAS, the EDA desires to levy a special benefit levy in the amount of .0144
percent of taxable market value in the City; and
WHEREAS, the EDA understands that the HRA does not expect to levy a special
benefit tax for fiscal year 2008; and
WHEREAS, the EDA has before it for its consideration a copy of a budget for its
operations for the fiscal year 2008 and the amount of the levy for collection in 2008 shall
be based on this budget.
NOW, THEREFORE, Be It Resolved by the Board of Commissioners of the
Columbia Heights Economic Development Authority:
1. The budget of $274.863 for the operations of the EDA presented for
consideration by the Board of Commissioners of the EDA is hereby in all respects
approved. Such budget includes the amount the EDA requests (by separate resolution) to
be levied by the City under Minnesota Statutes, Section 469.107, together with the amount
to be levied hereunder by the EDA under Minnesota Statutes, Section 469.033,
subdivision 6.
2. Staff of the EDA are hereby authorized and directed to file the budget with
SJR-236025vl
CL205-J
the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6.
3. There is hereby levied, subject to the approval of the City Council of the City,
a special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, in
the amount equal to the lesser of a levy at a rate of .0144 percent of taxable market value
in City, or $196,241 with respect to taxes payable in calendar year 2008.
4. Staff of the EDA are hereby authorized and directed to seek the approval by
resolution of the City Council of the City of the levy of special benefit taxes in 2008 and to
take such other actions as are necessary to levy and certify such levy.
Motion by:
Second by:
Attest by:
Motion passed this
day of
,2007.
Walter R. Fehst, Executive Director
Gary L. Peterson, President
SJB-236025vl
CL205-3
2
COMMUNITY
DEVELOPMENT
201-46310
City of Columbia Heights
2008 Budget work sheet
Department Proposed
201 COMMUNITY DEVELOPMENT FUND Actual Actual Adopted Department Manager Council
46310 COMMUNITY DEVELOPMENT ADMIN Expense Expense Budget . Proposed Proposed Adopted
Line Item Description 2005 2006 2007 2008 2008 2008
PERSONAL SERVICES
1000 ACCRUED SALARIES
1010 REGULAR EMPLOYEES 155,297 164,913 162,935 162,934 162,934
1011 PART-TIME EMPLOYEES
1012 SEASONAL EMPLOYEES 13,297
1020 OVERTIME-REGULAR 155 386 1,500 1,500 1,500
1021 OVERTIME-PART-TIME
1030 VACATION & SICK 2,065 5,500
1050 SEVERANCE PAY
1070 INTERDEPARTMENTAL LABOR SERV (41,498) (34,013)
1080 INTERDEPARTMENTAL LABOR CR
1210 P.E.RA CONTRIBUTION 8,596 9,874 10,197 10,583 10,583
1215 DEFERRED COMP CONTRIBUTION
1220 F.I.CA CONTRIBUTION 13,076 12,923 12,522 12,580 12,580
1225 FLEX BENEFIT FICA
1300 INSURANCE 12,924 14,651 14,172 16,812 16,812
1400 UNEMPLOYMENT COMPENSATION
1510 WORKERS COMP INSURANCE PREM 1,030 887 1,698 755 755
1700 ALLOCATED FRINGE
1800 INTERDEPARTMENTAL FRINGE CR
TOTALS: PERSONAL SERVICES 164,943 175,121 203,024 205,164 205,164
SUPPLIES
2000 OFFICE SUPPLIES 1,419 1,559 1,351 1,351 1,351
2010 MINOR EQUIPMENT 217 2,036 1,283 1,283 1,283
2011 COMPUTER EQUIPMENT (65) 1,029 1,029 1,029
2020 COMPUTER SUPPLIES 946 770 158 158 158
2030 PRINTING & PRINTED FORMS 96 356 356 356
2070 TRAINING & INSTR SUPPLIES 124
2160 MAl NT. & CONSTRUCT MATERIALS
2171 GENERAL SUPPLIES 176 283 453 453 453
2175 FOOD SUPPLIES 79 152
2280 VEHICLE PARTS
2282 GAS, OIL, LUBRICANTS
TOTALS: SUPPLIES 2,991 4,800 4,630 4,630 4,630
OTHER SERVICES & CHARGES
3041 ATTORNEY FEES-CIVIL PROCESS
3050 EXPERT & PROFESSIONAL SERV. 7,185 12,969 80,000 30,000 30,000
3105 TRAINING & EDUC ACTIVITIES 1,932 2,761 2,500 3,996 3,996
3120 EDUCATIONAL REIMBURSEMENT
3210 TELEPHONE & TELEGRAPH 1,783 1,445 1,124 1,485 1,485
3220 POSTAGE 670 614 509 740 740
3250 OTHER COMMUNICATIONS 47 32
3310 LOCAL TRAVEL EXPENSE 19 151 615 615 615
3320 OUT OF TOWN TRAVEL EXPENSE 673
3410 ADVERTISING EMPLOYMENT
3430 ADVERTISING OTHER
3500 LEGAL NOTICE PUBLISHING 475 475 475
3600 INSURANCE & BONDS 4,287 6,741 6,741 4,170 4,170
P3
3810 ELECTRIC 8
3820 WATER
3830 GAS
3840 REFUSE
3850 SEWER
4000 REPAIR & MAl NT. SERVICES 2,815 2,502 3,000 3,000 3,000
4050 GARAGE, LABOR BURD.
4100 RENTS & LEASES 30 35
4200 PROGRAM ACTIVITIES
4300 MISC. CHARGES
4330 SUBSCRIPTION, MEMBERSHIP 1,068 1,164 1,360 1,360 1,360
4342 PROPERTY DAMAGE
4374 EMPLOYEE RECOGNITION
4376 MISCELLANEOUS CIVIC AFFAIRS
4380 COMMISSION & BOARDS 975 876 1,425 1,425 1,425
4390 TAXES & LICENSES 975 975 975
4395 STATE SALES TAX 116
4500 ADMINISTRATIVE EXPENSES
4600 LOANS & GRANTS
4700 CREDIT INVESTIGATION
4800 COLLECTION LOSSES
TOTALS: OTHER SERVICES & CHARGE 20,927 29,971 98,724 48,241 48,241
CAPITAL OUTLAY
5110 LAND
5120 BUILDING & IMPROVEMENT
5170 OFFICE EQUIPMENT 11,022
TOTALS: CAPITAL OUTLAY 11,022
OTHER FINANCING USES
7100 OPER. TRANSFER OUT - LABOR 17,506 11,494 10,850 11,133 11,133
7200 TRANSFER OUT TO CDBG
7280 TRANSFER OUT TO CAP PROJ
7413 TRANSFER TO CAP IMP DEVELOP
8100 CONTINGENCIES 5,695 5,695
TOTALS: OTHER FINANCING USES 17,506 11,494 10,850 16,828 16,828
TOTALS: COMMUNITY DEVELOPMENT, 217,389 221,386 317,228 274,863 274,863
TOTALS: COMMUNITY DEVELOPMENT F' 217,389 221,386 317,228 274,863 274,863
GRAND TOTALS: 217,389 221,386 317,228 274,863 274,863
P4
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ee Inq 0 : coer ,
AGENDA SECTION: Business Items ORIGINATING EXECUTIVE
NO: 10 DEPARTMENT: DIRECTOR
Community Development APPROVAL
ITEM: Acquisition of 3805 2no Street BY: Kirsten Partenheimer BY:
DATE: October 18, 2007
M t' f 0 t b 23 2007
BACKGROUND:
The purpose of this memorandum is to ask Commissioners to authorize staff to negotiate a
purchase agreement for the residential property located at 3805 2nd Street NE for the purpose
of redeveloping it from a vacant and burned out single-family home into two new single-family
homes. The rental property currently contains a small single-family home, which is
uninhabitable due to a recent fire.
Property Background
The home, which was built in 1922 and has approximately 732 square feet of living space, is
on a corner lot measuring 80' x 130'. Zoned R2-A (One- and Two-Family Residential District)
the lot is comprised of two legal lots of record, facing Second Street. (Please see attached
photographs of existing structure.)
A fire on September 7, 2007 damaged the home and the building official has posted it as
uninhabitable. When the owners, Lisa and Steve Petersen, determined that it would be
unprofitable to repair the property, and were unable to find new investors, they approached the
City of Columbia Heights, to determine if the City would be interested in negotiating a sale
price. The land and improvements are assessed at $139,200 and the land is assessed at
$91,600 for pay 2008. The property owner is willing to sell the property for $100,000, plus
closing costs and outstanding assessments, which would result in the purchase price of
approximately $105,000.
Redevelopment Project
Upon acquisition of the property, GMHC would build a similar project to the one at 4141
Jefferson Street NE. The GMHC would demolish the existing home and build two new single-
family for sale homes. Each home would be two stories with three bedrooms and two and a
half baths and would comprise approximately 1,650 square feet. Both of these homes would
sell for a target price of $235,000. Demolition could begin as early as December 2007, with
construction occurring soon thereafter. Marketing would begin simultaneously with demolition.
(Please see attached photographs of GMHC homes previously constructed in Columbia
Heights.)
The table provides a quick look at the results of redeveloping this property.
Before After Chanqe
# of Single-Family Homes 1 2 1
Property Value $ 139,200 * $ 470,000 * $ 330,800
Property Tax $ 1,284 $ 4,335 * $ 3,051
* Approximate
The cost to acquire the property, demolish the existing structure, and construct two new
homes is estimated to be $556,647. The sale of both homes would generate $470,000 of
revenue. Subsequently, in order to successfully redevelop the property, the project is
C:\Documents and Settings\CCH-User\Local Settings\Ternp\EDA Acquisition of
3805 2nd St.doc
estimated to require $86,647 of funding assistance to make it feasible.
Gap funding assistance could come from the new Anoka County HRA levy the City Council
approved on September 10, 2007. Funds would initially come from Fund 420 - Capital
Improvement - Development Fund, and would be repaid after January 1 with the Anoka
County HRA levy funds. To access these funds, the City Council will need to pass a resolution
requesting the funds from the Anoka County HRA at their November 26,2007 meeting. Karen
Skepper from Anoka County indicated this could be a qualified expenditure.
Comprehensive Plan
By facilitating the redevelopment of this property, the EDA would be implementing two goals of
the Housing component of the Comprehensive Plan. These goals and their corresponding
action steps are listed below.
Goal: Promote and preserve the single-family housing stock as the community's strongest
asset.
. Action Step: The City will acquire and demolish the most seriously deteriorated
single-family homes and work with the private sector to develop appropriate
replacement housing.
. Action Step: The City will acquire and assemble residential lots, as opportunities
arise, for the purpose of developing infill housing.
Goal: Provide a variety of life cycle housing opportunities within the community.
. Action Step: The City will foster partnerships with the private sector to help diversify
housing in the community.
Housing Maintenance Plan 2008-2017
The EDA approved the 10-Year Housing Maintenance Plan to provide to maintain the City's
housing stock. Of the five programs implemented as part of the plan, the redevelopment of
3805 2nd Street would meet the intent of the Single-Family Home Replacement Program,
which provides funding for the replacement of the most blighted and dilapidated single-family
detached homes within the city with new single-family detached housing.
Summary
In summary, the EDA is presented with an opportunity to remove a vacant and blighted home
and replace it with two new single-family for-sale homes with target sales prices of $235,000.
To accomplish this task, the City would partner with GMHC as the homebuilder as well as
provide financial assistance to GMHC to make this redevelopment feasible. This
redevelopment would implement the goals of the Comprehensive Plan and the Housing
Maintenance Plan, and would result in a much-needed physical improvement to the
neighborhood.
Therefore, staff is requesting authorization to negotiate a purchase agreement with the owners
of 3805 Second Street NE, and prepare a development agreement between the EDA and
GMHC to be presented for approval at the November 27, 2007 EDA meeting.
If an agreement can be reached with the property owners, staff will present the EDA with a
contract agreement with GMHC at its November 27, 2007 meeting.
C:\Documents and Settings\CCH-User\Local Settings\Temp\EDA Acquisition of
3805 2nd St.doc
RECOMMENDATION: Staff recommends the EDA authorize staff to negotiate a purchase
agreement with the owners of 3805 2nd Street NE for a total price, including closing costs and
outstanding assessments, not to exceed $105,000.
RECOMMENDED MOTION: Move to authorize staff to negotiate a purchase agreement with
the owners of 3805 2nd Street NE for a total price, including closing costs and outstanding
assessments, not to exceed $105,000.
EDA ACTION:
C:\Oocuments and Settings\CCH-User\Local Settings\Temp\EDA Acquisition of
3805 2nd St.doc
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Date: October 18, 2007.
Prepared by: Kirsten Partenheimer,
Community Development Specialist,
City of Columbia Heights.
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Figure 1. View of property from 2ud Street.
Figure 2. View of property from 38th Aveuue.
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Figure 4. View of back of bouse.
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Figure 9. The homes GMHC would coustruct at 3805 2"d Street are similar to these here.
Figure 10.