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HomeMy WebLinkAboutEDA MIN 10-23-07 ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OCTOBER 23, 2007 CALL TO ORDERIROLL CALL President, Gary L. Peterson called the meeting to order at 8:40 p.m. Present: Gary L. Peterson, Bruce Nawrocki, Tammera Diehm, Marlaine Szurek and Bruce Kelzenberg Absent: Bobby Williams Peterson asked for a moment of silence in remembrance of Commissioner, Patricia Jindra the recently passed away. PLEDGE OF ALLEGIANCE CONSENT AGENDA Approve Minutes of August 27 and 28th, 2007 meetings and the Financial Report and Payment of Bills for the months of August and September 2007 on Resolution 2007-23. Motion by Kelzenberg, second by Szurek, to approve the minutes and Resolution 2007- 23, approving the Financial Report and payment of bills for the months of August and September 2007. All ayes. Motion Carried. 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 jf 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 23rd day of October 2007. BUSINESS ITEMS Economic Development Authority Meeting Minutes October 23, 2007 Page 2 of 10 Resolution 2007-24, Assi~mment and Assumption: Grand Central Lofts, Commercial Improvements Streetar stated this Assignment and Assumption Agreement transfers certain rights and obligations in the contract for private redevelopment between the EDA and Grand Central Properties, LLC to Grand Central Commons, LLC; Ehtesham Khoratty. This allows Grand Central Properties LLC to sell the approximate 2-acre commercial property to Grand Central Commons, LLG. Even though the commercial property would no longer be owned by Mr. Kloeber, he will still be responsible for completing the construction of the commercial improvements of the project in accordance with the requirements of the private contract The EDA must determine that Grand Central Commons, LLC has the qualifications and financial capability to fulfill the obligations in the private contract for redevelopment They have assembled a qualified and experienced team to complete the commercial improvements. Staff met with all parties and determined that Grand Central Commons, LLC is qualified and has the financial capability to fulfill the obligations in the contract for private redevelopment Developer, Ehtesham Khoratty, Contractor, Pete Nelson, Designer, John Feges, Anchor Bank, Peter Miller and Mike Norton, Kennedy & Graven are all here tonight to answer any questions the board may have. Nawrocki said he would like to know more about Ehtesham Khoratty. Ehtesham stated he has his masters degree, went to Kellogg School of Management, he owns his own company in New Jersey, owns developments on the beaches in his country, developments, he has been in this country for 21 years. Nawrocki stated he wanted to know a little about his finances. Peter Miller, Anchor Bank, stated he has known Ehtesham for about two years and has handled his financial statements. The bank approved about a $1,000,000 acquisition. He felt that Ehtesham's finances are good and if this development goes through they would be financing the project at 100 percent Streetar stated he has a letter from Peter Miller, of Anchor Bank which states they are going to provide all of the $1.4 million dollars for the development When they come back to the EDA they will show us they have all of the ability to build whatever they are going to, which they have the ability to build 10,000 square feet of commercial that the development agreement requires. Nawrocki asked where the cost of the ramp would be coming from above and beyond the money from Met Council. Streetar stated the cost of the ramp is driven by: 1) the amount of commercial they build; 2) it is also driven by the value of that commercial space, which impacts how much tax increment is available and 3) when the ramp is built, it will be a public ramp, and this agreement would be set up something like the ramp at the medical building on 40th and Central for maintenance. Peterson asked if Kloeber owns the Condos and the town homes are already split off to another owner. Streetar stated that was correct Economic Development Authority Meeting Minutes October 23, 2007 Page 3 of 10 Motion by Diehm, second by Kelzenberg, 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. All ayes. Motion Carried. RESOLUTION NO 2007-24 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, 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 "Contract"), setting forth the terms and conditions of redevelopment of certain property within the Redevelopment Project, generally located east of Central Avenue, between 47th and 491h 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 for the Commercial Property described in the Contract, and seeks to transfer the Commercial Property and obligations related in the Contract therelo 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 for 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 identified in the Assignment, and 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. Authoritv Aooroval: Further Proceedinas. 2.01. The Assignment as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Assignment and any documents referenced therein requiring execution by the Authority, and to carry oul, on behalf of the Authority its obligations thereunder. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 23rd day of October 2007. Preliminarv Development A~reement for the Bur~er Kina Redevelopment Site Schumacher stated the EDA acquired the Burger King site in 2004 for redevelopment purposes. Tom Frattalone, owner of Frattalone Ace Hardware met with staff in the spring to discuss the possible relocation of this hardware store, currently located near the comer of 3yth & McKinley, of which his lease will expire soon. Staff reviewed the redevelopment areas the EDA identified as priorities and Mr. Frattalone decided that the former Burger King site would best suit his needs. He 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, he would like to move through the review process in a timely manner. We don't have any financials yet as we need this first step approved first. This is a Preliminary Development Agreement, which provides the developer the chance to provide the City with plans for development of a new Economic Development Authority Meeting Minutes October 23,2007 Pagc 4 of 10 hardware store. Tom Frattalone, owner of Frattalone Ace Hardware is present tonight to state his case for the new building. Tom Frattalone stated he was here with his father, who started the company back in 1965, and his contractor, Jim Faulkner, of Faulkner Construction. They have been in the hardware business for 32 years and in Columbia Heights for 21 years. They are looking to move out of their current site that no longer meets their needs to a better site. His father is 64 and is no where ready to retire, they have 20 employees, they will be filling the building with roughly $40 per square foot of inventory and $20 per square foot of fixture and furniture costs, plus any other costs they may have. Nawrocki stated he was familiar with their business, the quality, and was impressed with his staff, but was concerned about discussions that staff has made with them on issues like contamination clean up and funding. Tom Frattalone stated, at this time they haven't had any financial discussions. Basically, he would be putting in $840,000 worth of inventory in the building, the garden center would have a full rod iron fence with concrete fillers, on a concrete slab, professional fixtures made to look like an up scale garden center that you might see at some of his other sites. Nawrocki asked how many square feet of space does he have in his current building. Frattalone stated it has 11,200 square feet with about 1,200 square feet of the mezzanine. Nawrocki stated the new store wouldn't be much bigger. Frattalone stated he is looking to continue servicing the residents that want to come and purchase from a small hardware store, and isn't looking to take on Menard's up the street. Diehm stated she was very excited to hear about this opportunity, and that having a Columbia Heights business relocate to another site in our City was a wonderful idea. Motion by Diehm, second by Kelzenberg, 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. All ayes. Motion Carried. Preliminarv Development Aareement for the Beecroft Redevelopment Site Schumacher stated City Council designated the Beecroft Redevelopment site at 3ih & Central Avenues, and a gateway to the City, as a priority when it drafted their redevelopment goals for the City. Community Development Block Grant funds were used to acquire the two non-conforming, single-family homes and demolished them. In 2003, the City acquired the Beecroft building at 3710 Central A venue, leased it out for a number of years to the Don-Murnane Wig Company, who retired in the fall of 2006, leaving the building vacant. This area provides a great gateway to the City. Chris Little and his father, Richard of CRo.S. Companies LLC and Loucks Associates, their planning and design firm, have met with staff for the past few months to discuss design options for a 9,600 square foot building on the site. The developer is working on Economic Development Authority Meeting Minutes October 23, 2007 Page 5 of 10 sources and uses statements 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, the developers would like to enter into a 120-day agreement to provide a Preliminary Development agreement with the EDA to assure them the EDA will not enter into an agreement with another party for redevelopment of the property. Rick Little, has been involved as a real estate attorney, has done over a quarter of a million dollars in retail such as CUB foods, Hollywood Video, Caribou Coffee, Kinkos, Cost Cutters, Goodyear Store, 100,000 square feet of development in Coon Rapids. We feel this is a wonderful corner for some of these little shops and has had some preliminary discussions with some retailers that you don't have out here. Chris Little stated he lives in Columbia Heights, understands the areas needs and feels that we need this type of businesses in the City. Nawrocki stated he was concerned with the same issues as the previous item, funding, financing, what it will look like, etc. Schumacher stated this is a Preliminary Development Agreement to allow them 120 days to prepare and combine the documents that you are speaking about. Diehm stated it was a great idea and looked forward to working with them and having this type of businesses in Columbia Heights. Motion by Diehm, second by Kelzenberg, to Approve the Preliminary Development Agreement between CRO.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. All ayes. Motion Carried. Demolition of Beecroft Building at 3710 Central Avenue Partenheimer stated the building is vacant and is needed for development. The City Council designated the Beecroft redevelopment site near the corner of 3ih & Central Avenues in their redevelopment goals. The retail building 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 and remains a liability for the City. On October 17, 2007, staff received the following four quotes for demolition of the building: 1) Frattalone Inc. in an amount of $23, 600; 2) Veit Inc at $23,859; 3) Rachel Contracting at $29,625; and 4) Belair Excavating at $29,830. Frattalone Inc provided the lowest quote of $23, 600 and would remove the entire building, as well as all bituminous and concrete paving, landscaping, grading and seeding. Nawrocki asked if we went out for bids. Partenheimer stated staff only went out and got four bids for the board to review. Motion by Szurek, second by Kelzenberg, to approve the low quote for the demolition of Economic Developmenl Authority Meeting Minutes October 23,2007 Page 6 of 10 the Beecroft building at 3710 Central Avenue from Frattalone Inc. in an amount not to exceed $23,600. All ayes. Motion Carried. Industrial Park Groundwater Investigation Report of Contaminated Soil Schumacher stated after three years, the clean up of the Industrial Park is complete, using over $4,500,000 of grant funding to remove over 138,000 cubic yards of contaminated soil. To date, 139 units have been built in Phase 1, with an additional 32 units under construction in Phase II. The final step as required by the MPCA is to conduct a Groundwater Investigation Report of the contaminated Industrial Park. ProSource will meet with staff from the MPCA to review the existing data, discuss our approach and determination for well locations. Then they will prepare access agreements and coordinate with landowners for well installation. A total of eight monitoring wells will have to be installed as part of this investigation. Drilling services will be provided by Traut Well Company of Waite Park, Minnesota. All work will be done in accordance with the 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. After the well development, Pro Source will conduct two rounds of base line sampling to evaluate groundwater quality and will also survey each well to provide vertical and horizontal control. Once the fieldwork is complete, Pro Source will prepare a report for submittal to the MPCA, which will include a discussion of field methods, geologic/hydro geologic conditions and analytical results, applicable tables, figures, and/or supporting data. The cost to complete this project is $84,748, which $45,568 will cover the cost of drilling services and 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 MPCA. The entire cost for this scope of work will be funded by Community Development Block Grant funds as well as the Metropolitan Council grant dollars that have already been secured. This will show the MPCA how deep and wide the contamination is still present. As you know the foundry had some large drums that leaked down into the soil, which was removed, this is the kind of information that the MPCA needs to finalize the project. Szurek asked where are they going to put the wells. Schumacher stated they just located them today. The sandstone rock comes up on the corner of 5th, where Rayco was. It all spins back to the old Honeywell building. Szurek asked how often they monitor them and how deep will they be. Schumacher stated they will monitor them for two years and they are 100 to 200 feet deep. What we are saying now is that we have done what we said we would do. This is the findings. Peterson asked after two years, what becomes of the wells, would ProSource remove them. Schumacher stated ProSource will not remove them, we would have to remove them and wasn't sure of the cost. Motion by Diehm, second by Kelzenberg, to Approve the ProSource Industrial Park Economic Development Authority Meeting Minutes October 23, 2007 Page 7 of 10 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. All ayes. Motion Carried. Resolution 2007-21 and 2007-22. 2008 Budqet and Levy Streetar stated the focus of the EDA since 2002 has been redevelopment of specific areas and improvement ofthe housing stock. The EDA budget for 2008 is $274,863, which allows the continued implementation of the EDA's priorities related to redevelopment, and housing. This is a reduction from last year of approximately $40,000. The EDA raises this amount through two levies; the EDA levy of $78, 622 and the HRA levy of $196, 241. These fund the authority staffing and supplies. The EDA must pass a resolution approving and recommending the EDA budget of $274,863 and a levy of $78, 622 to the City Council for approval and a resolution approving and levying subject to City Council approval, the special benefit levy of $196, 241. Over six years the whole budget has increase $22.5 or about 1.6% a year. There is no new programs or new staff, just a reduction in the amount. Nawrocki stated this wasn't the total budget for your department, but it is far from true. You have all these special funds that people keep dipping their hands in. Streetar asked, if there were any special funds he would like information on, as he isn't aware of these funds. Nawrocki stated he would get him a list. Nawrocki asked what is the special benefits levy for. Streetar stated the $274,000 funds the redevelopment and housing activities in this City or the EDA and HRA. Nawrocki asked if the EDA levy is a part of the general fund and the HRA levy is the hidden funds. Streetar stated this is a public meeting, and taxes in this City are taxed at the lowest effective rate in the metropolitan area. Motion by Diehm, second by Kelzenberg, 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. All ayes. Motion Carried. Motion by Diehm, second by Kelzenberg, 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. All ayes. Motion Carried. 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 forthe purposes authorized under State Statues 469.090 to 469.1081, subject to consent by the City Council. Economic Development Authority Meeting Minutes October 23, 2007 Page 8 of 10 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 $274863 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 23rd DAY OF October 2007. 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 Hei9hts ("City") created the Columbia Heights Economic Development Authority (the "EOA"); and WHEREAS, pursuant to City Resolution 2001-62 and Ordinance No. 1442, the City Council granted to the EOA 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 HRAAct 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 EOA 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 469.1 07, togelherwith 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 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 passed this 23rd day of October 2007. ACQuisition of 3805 2nd Street Partenheimer stated the owners, Lisa and Steve Petersen of 3805 2nd Street, approached staff to determine if the City would be interested in negotiating a sale price for the single-family home, built in 1922, approximately 732 square feet, on a corner lot 80 x 130, zoned R-2, after they determined the home would be unprofitable to repair Economic Development Authority Meeting Minutes October 23, 2007 Page 9 of 10 after the fire on September 7, 2007, which left it uninhabitable. The land and improvements are assessed at $139,200 and the land at $91,600 for pay 2008. The properly owner is willing to sell the properly for $100,000, plus closing costs and outstanding assessments, which would result in the purchase price of approximately $105,000. Staff has talked to GMHC, which would demolish the home and build two, new, single-family for sale homes similar to the ones they are building on Jefferson Street, with a target price of $235, 000 each. The cost, to acquire the properly, demolish, and construct two, new homes is estimated at $556,647. The sale of both homes would generate $470,000 of revenue, leaving a balance of $86,647 necessary for funding assistance to make it feasible. GAP funding assistance could come from the 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 1st with the Anoka County HRA Levy funds. To access these funds, the City Council would need to pass a resolution requesting the funds from the Anoka County HRA's meeting of November 26, 2007. Karen Skepper from Anoka County has indicated this could be a qualifying expenditure. Staff is requesting authorization to negotiate a purchase agreement with the owners of 3805 2nd Street and prepare a development agreement between the EDA and GMHC to be presented for approval at the EDA's November 2ih meeting. Peterson stated it was a good deal. Diehm and Szurek agreed with him. Nawrocki stated the properly is cerlainly not worlh $100,000, they bought the home a couple of years ago when it was habitable and now it is uninhabitable, and felt it wasn't a good deal. Streetar stated the land is valued at $92,000, which is $10,000 difference, they have a morlgage to payoff, so if the City chooses not to do anything, I'm sure it will stay there just like 4141 Jefferson did for two years and become blighted in the neighborhood. So it is a way to get two brand new, single family homes and provide a boost to that neighborhood and as Parlenheimer mentioned the money could come from the Anoka County levy. All the council has to do is to pass that resolution before the end of the year and you will get that money immediately. Nawrocki stated it is questionable if that properly will sit that long, if they have a morlgage on the properly, which you said they do, we assume they had insurance, maybe they didn't. Diehm stated what we are saying is even if the bank forecloses, it will sit. Nawrocki stated his point is that we are paying way too much for the properly. Peterson stated that is your opinion. Resident, Lisa Peterson stated she is the owner of the properly, it's not going to just sit, I'm going to fix it up if the City doesn't buy the house. But being a resident of Columbia Heights also she would much rather that the City buy the properly, tear down the little tiny house and build two beautiful homes, like what they are doing on Jefferson. She tried to rent out the home, and got some bad renters who burned the inside of the house. Economic Development Authority Meeting Minutes October 23, 2007 PagclOoflO Nawrocki stated if he were her, he would probably say the same things. Lisa Peterson stated, actually Bruce I am loosing about $25,000, of what I have originally put into that house. Motion by Diehm, second by Szurek, 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. Upon Vote: Nawrocki-nay, Kelzenberg-aye, Diehm-aye, Peterson-aye, Szurek-aye. Motion Carried. ADJOURNMENT President, Peterson, adjourned the meeting at 10:03 p.m. Respectfully submitted, ~ ft--V--- Cheryl Bakken Community Development Secretary H :\EDAminutes2007\ 10-23-2007 EDA