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Home My WebLink AboutEDA MIN 11-27-07 ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES NOVEMBER 27, 2007 CALL TO ORDER- by President, Gary L, Peterson at 7:02 p,m, ROLL CALL Present: Gary L, Peterson, Bobby Williams, Bruce Nawrocki, Tammera Diehm, Marlaine Szurek and Bruce Kelzenberg PLEDGE OF ALLEGIANCE CONSENT AGENDA Approve Minutes of October 23, 2007 regular meeting and the Financial Report and Payment of Bills for the month of October on Resolution 2007-25, Motion by Nawrocki, second by Williams, to approve the consent agenda, All ayes. Motion Carried. EDA RESOLUTION 2007-25 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR OCTOBER 2007 AND PAYMENT OF BILLS FOR THE MONTH OF OCTOBER 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 EOA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EOA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the month of October 2007 and the list of bills for the month of October 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 27th day of November 2007. BUSINESS ITEMS Resolution 2007-26, Contract for Private Redevelopment Kirsten Partenheimer stated before you is a Contract for Private Redevelopment of the property located at 3805 2nd Street, Bill Beulow from GMHC is here tonight to answer any questions the board may have. The rental property currently contains a small single-family home, which was deemed uninhabitable by the building official due to a fire on September 7, 2007, The owners, Lisa and Steve Peterson came to the City for help as they realized it wouldn't be profitable to repair the home and were unable to find new investors, The home was built in 1922, is approx. 732 sq feet of living space, lot size of 80 x 130 feet, zoned R-2A (one and two family residentia/), and is comprised of two legal lots of record, facing 2nd Street. Upon acquisition, GMHC would demolish the home to build two new single-family homes similar to the ones they are building at 4141 Economic Development Authority Meeting Minutes November 27, 2007 Page 2 of 4 Jefferson Street. Each home would be two stories, three bedrooms, have two one and a half baths, approximately 1,650 square feet and would sell for a targeted price of $235,000. Cost to acquire and construct two new homes on the property would be approximately $556,647 and would require an estimated $86,647 of funding assistance. The gap would be funded from the Anoka County HRA levy that was approved on September 10, 2007. City Council would pass a resolution requesting the funds from Anoka County HRA, which was approved last night. Nawrocki asked if the owners have been paid for the fire damages from their insurance company. Streetar stated he believed they did receive some money, but he didn't know how much. Nawrocki stated he would not support this motion at this time. Motion by Diehm, second by Kelzenberg, to Adopt Resolution 2007-26, a Resolution Approving a Contract for Private Redevelopment between the Columbia Heights Economic Development Authority and the Greater Metropolitan Housing Corporation (GMHC); and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Upon Vote: Szurek-aye, Kelzenberg-aye, Diehm-aye, Williams-aye, Nawrocki-nay, and Peterson-aye. Motion Carried. RESOLUTION NO. 2007-26 RESOLUTION APPROVING A CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND GREATER METROPOLITAN HOUSING CORPORATION BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopmentauthorily, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ("EDA Act"), and is currently administering the Downtown CBO Redevelopment Project ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. The Authority and the Greater Metropolitan Housing Corporation (the "Redeveloper") have proposed to enter into a Contract for Private Redevelopment (the "Contract"), setting forth the terms and conditions of redevelopment of certain property within the Redevelopment Project located at 3805 Second Street and described as Lots 19 and 20, Block 71, Columbia Heights Annex to Minneapolis (the "Redevelopment Property"). 1.03. Pursuant to the Contract, the Redeveloperwill acquire the Redevelopment Property from a third party owner, divide the property into two lots and construct two single family homes with a target price of$235,000 each, and the Authoritywill provide certain financial assistance in that effort. 1.04. The activities of the Authority under the Contract implement housing goalS of the City's Comprehensive Plan: "Promote and preserve the single-family housing stock as the community's strongest asset." and "Provide a variety of life-cycle housing opportunities within the community." 1.05. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder further the goals of the Comprehensive Plan and are in the best interests of the City and its residents. Section 2. Authoritv Aooroval: Further Proceedinas. 2.01. The Contract as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution ofthe documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 2ih day of November 2007. Economic Development Authority Meeting Minutes November 27, 2007 Page 3 of4 Resolution 2007-27. GMHC Consultinq Services Aqreement for 2008 Partenheimer stated the Greater Metropolitan Housing Corporation has been providing services to the residents of Columbia Heights since 2002. The services provided are: information on home rehabilitation or mortgage foreclosure prevention, construction consultation, access to funds through MHFA Fix-Up loans, the Rebah Incentive Funds or the new single-family Deferred Loan Program. The cost of the program for 2008 is $15,000, the same as in previous years. Suzanne Snyder of GMHC is here tonight to answer any of your questions. Diehm stated she was aware of these programs, thinks it's very important and beneficial for the residents of Columbia Heights and would like to commend them on the work they have done for our City. Peterson asked if Snyder could tell them a little about what services they provide. Snyder stated she brought with her Denise London, program coordinator at the northeast Housing Resource Center. Snyder stated she wanted to share a few numbers with you. They have been working with the City of Columbia Heights for about five and a half years. During that time they have provided services to 908 households, a total of over 1,800 services have been provided, 512 construction management services, over 145 site visits, and 56 scopes of work. The rebate program is one of the most successful programs in the Twin City area. Since the program started we have given back a total of $115, 000 to residents, which comes out to $1,145,000 of improvements. It has been their pleasure to work with the City. Motion by Diehm, second by Kelzenberg, to Adopt Resolution 2007-27, a Resolution Approving the 2008 Consultant Services Agreement with the Greater Metropolitan Housing Corporation (GMHC); and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. EDA RESOLUTION NO. 2007-27 A RESOLUTION APPROVING THE 2008 CONSULTANT SERVICES AGREEMENT WITH THE GREATER METROPOLITAN HOUSING CORPORATION (GMHC) AND APPROPRIATING $15,000 FROM FUND 207 - HOUSING MAINTENANCE FUND FOR THE SAME. WHEREAS, the Greater Metropolitan Housing Corporation (GMHC) has agreed to prOVide consulting services. WHEREAS, the Columbia Heights Economic Development Authority through its Comprehensive Plan has established as a goal the preservation of the single-family housing stock. WHEREAS, the Greater Metropolitan Housing Corporation has provided housing preservation services since 2002. WHEREAS, the residents have found these services to be a significant assistance to help preserve and maintain their homes. THEREFORE, BE IT RESOLVED, that the EDA approves the 2008 Consultant Services Agreement with the Greater Metropolitan Housing Corporation and appropriates $15,000 from Fund 207 - Housing Maintenance Fund for the same. Passed this 27th day of November 2007. Economic Development Authority Meeting Minutes November 27, 2007 Page 4 of 4 Resolution 2007-28. GMHC Rehab Incentives and Deferred Loan Aareements Partenheimer stated the EDA is being asked to provide funding for these programs. Staff is requesting authorization of $45,137 of funding for the Columbia Heights Rehab Incentive Program and $30,643 for the new single-family home Deferred Loan Program. The Rehab Incentive Program is designed to assist homeowners in maintaining and improving their homes by providing rebate payments of 10%, 12% or 15%, up to $3,000. Another program is the Single-Family Home Deferred Loan Program would provide no or low interest loans to homeowners of lower income to complete structural improvements, such as exterior improvements related to the health and safety, code violations or energy efficiency, such as windows, siding and roofs would be eligible. Repayment of the loan, plus interest of two percent would be required upon sale or transfer of the home, which would be returned to the funds for use by another homeowner. Owners are eligible for up to $7,500. A lien applied to the property by Anoka County ensures that the loan will be repaid. Motion by Kelzenberg, second by Szurek, to Adopt Resolution 2007-28, a Resolution Approving funding for the Rehab Incentive Program in the amount of $45,137 and the Single-Family Home Deferred Loan Program in the amount of $30,643 to the Greater Metropolitan Housing Corporation (GMHC) from Fund 207- Housing Maintenance Programs. Upon Vote: Szurek-aye, Kelzenberg-aye, Diehm-aye, Williams-aye, Nawrocki-aye, and Peterson-aye. Motion Carried. EDA RESOLUTION NO. 2007-28 A RESOLUTION APPROVING FUNDING FOR THE REHAB INCENTIVE PROGRAM ($45.137) AND THE SINGLE-FAMILY HOME DEFERRED LOAN PROGRAM (SFHD) ($30,643) TO THE GREATER METROPOLITAN HOUSING CORPORATION (GMHC) WHEREAS, the Columbia Heights Economic Development Authority (EDA) through its Comprehensive Plan has established as a goal the preservation of the single-family housing stock. WHEREAS, the EDA approved the Housing Maintenance Plan 2008-2017 to improve and maintain the residential homestead housing stock. WHEREAS, the Greater Metropolitan Housing Corporation has agreed to provide consulting services. WHEREAS, the Greater Metropolitan Housing Corporation has provided housing preservation services since 2002. THEREFORE, BE IT RESOLVED, that the EDA aliocates $45,137 for the Rehab Incentive Program and $30,643 for the Single- Family Home Deferred Loan Program to the Greater metropolitan Housing Corporation from Fund 207 - Housing Maintenance Programs. Passed this 27th day of November 2007. ADJOURNMENT President, Peterson, adjourned the meeting at 7:39 p.m. Res~ectfulI submitted, e-. ~?.-Z Chery Bakken Community Development Secretary H:\EDAminutes2007\ 11-27 -2007