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HomeMy WebLinkAboutEDA AGN 01-23-08 CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E.. Columhia Heights, MN 55421.3878 (763) 706.3600 TDD (763) 706.3692 Visit Ollr Website (1(: IVww,ci,colwnbi{/-heights,nJlI.us AGENDA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY 7:00 PM January 23, 2008 Parkview Villa, 965 40lh Avenue NE, Columbia Heights 1. Call to Order/Roll Call Gary L. Peterson, President Position Open, Vice President Bruce Kelzenberg, Secretary/Treasurer Tammera Diehm Bobby Williams Bruce Nawrocki Marlaine Szurek 2. Pledge of Allegiance CONSENT AGENDA 3. Election of Officers President Vice President Secretary/Treasurer 4. Approve Minutes of November 27, 2007 and financial report and payment of bills for November and December 2007, on Resolution 2008-01. Motion: Move to Approve the minutes and Resolution 2008-01, approving the Financial Report and payment of bills for the months of November and December, 2007. BUSINESS ITEMS 5. Adopt Resolution 2008-02, 2008 CDBG Application Motion: Move to Adopt Resolution 2008-02, a Resolution of the Economic Development Authority of the City of Columbia Heights, Minnesota authorizing Application for the 2008 Anoka County Community Development Block Grant (CDBG) funding for the purpose of subsidizing the acquisition of the Commercial properties at 3700 and 3706 Central Avenue (Chutney Indian Grill) in the amount of $300,000, to submit said application to Anoka County. 6. Other Business 7. Adjournment The next regular EDA meeting will be Tuesday, 26, 2008 at City Hall. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATC ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER 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 EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the month of 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 residential), 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 offunding 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") oftha Columbia Heights Economic DevelopmentAulhority("Authority") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ("EDA Act"), and is currently administering the Downtown CaD 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 Properly 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 aU 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 implemenlthe 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 Consultina Services Aareement 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 vety 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 2ih 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 Aqreements 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 Corporallon 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 allocates $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. Respectfully submitted, Cheryl Bakken Community Development Secretary H:\EDAminutes2007\ 11-27 -2007 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: January 23, 2008 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: 3 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Election of Officers BY: Cher Bakken BY: DATE: January 14, 2008 BACKGROUND: The Bylaws of the Columbia Heights EDA specify in Article II-Section 1, that the offices of President, Vice-President, Secretary, and Treasurer be elected annually. We have attached a Transcript of Proceedings outlining the process for nomination of persons to the various offices. According to Article III-Section 4 four commissioners constitutes a quorum, and as such, election of officers may be held. RECOMMENDATION: Move to cast a unanimous ballot nominating and appointing for President, for Vice President, for Secretary; for Treasurer. RECOMMENDED MOTION: Move to cast a unanimous ballot nominating and appointing for President; for Vice President; for Secretary; for Treasurer. Attachment EDA ACTION: H:\consent Form2008\EDA Election of Officers EDA ELECTION PROCEDURES . We will know have the Election of Officers. . Nominations are know being taken for the office of (Office). (After a nomination is made) 1. has been nominated. 2. Are there any other nominations? 3. Are there any other nominations? 4. Are there any other nominations? 5. If NONE - All those in favor say aye. Opposed nay. 6. The chair declares elected as (Office). COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of January 23, 2008 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: 4 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Cher Bakken BY: DATE: Januarv 14, 2008 BACKGROUND: The bound Financial Report for the months of November and December 2007 draft Resolution 2008-01 is attached for review. The enclosed Financiai Report lists the Summary (white), the Check History (Green), the Expenditure Guideline with Detail (blue) and Revenue Guideline with detail (yellow) for each fund. The reports cover the activity in the calendar (fiscal) year from January 1 through December, 2007. 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 2008-01, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for the months of November and December 2007. EDA ACTION: H:\EDAConsent2008\November December Fin Rep 2007 EDA RESOLUTION 2008-01 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR NOVEMBER AND DECEMBER 2007 AND PAYMENT OF BILLS FOR THE MONTHS OF NOVEMBER AND DECEMBER 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 month of November and December 2007 and the list of bills for the months of November and December 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 ,2008. MOTION BY: SECONDED BY: AYES: NAYS: President Attest by: Cheryl Bakken, Assistant Secretary H:\Resolutions2008\EDA2008-01 fin November December 2007 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: January 23, 2008 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO.5 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Adopt Resolution 2008-02, Authorizing BY: Kirsten Partenheimer BY: Application for 2008 Community DATE: January 17, 2008 Development Block Grant Funding BACKGROUND: The CDBG program is the federal government's primary program for promoting community revitaiization throughout the country and provides annual grants on a formula basis to Anoka County. The objective of the US Department of Housing and Urban Development-administered program is to develop viable urban communities that provide decent, safe, and sanitary housing, a suitable living environment and expanded economic opportunities primarily for persons of low and moderate incomes. In January 2002, the City Council identified the area at the corner of 3ih Avenue and Central as a redevelopment priority. The properties included the Beecroft building, two non-conforming single-family homes, and the Chutney Indian Grill (and adjacent parking lot). The City used CDBG funds to acquire and demolish the single-family homes and the Beecroft building. At its October 23, 2007 meeting, the EDA entered into a predevelopment agreement with Chris Little of CRO.S. Companies LLC to redevelop the properties (excluding Puerta Del Sol). Mr. Little has proposed building five retail outlets, totaling approximately 10,000 square feet of commercial space. A site plan will be presented to the Planning Commission on February 6, 2008 and the City Council on February 11,2008. Staff recommends the EDA authorize submission of an application for Community Development Block Grant funds in the amount of $300,000 for subsidizing the acquisition of the Chutney Indian Grill (and adjacent parking lot). If the redevelopment project does not come to fruition, the EDA would be able to reallocate these funds to other qualifying projects. Anoka County will notify approved projects in April 2008. RECOMMENDATION: Staff recommends submitting the 2008 Community Development Block Grant Program Application for subsidizing the acquisition of the Chutney Restaurant at 3700 and 3706 Central Avenue NE. RECOMMENDED MOTION: Move to Adopt Resolution 2008-02, a Resolution of the Economic Development Authority of the City of Columbia Heights, Minnesota authorizing Application for the 2008 Anoka County Community Development Block Grant (CDBG) funding for the purpose of subsidizing the acquisition of the Commercial properties at 3700 and 3706 Central Avenue (Chutney Indian Grill) in the amount of $300,000, to submit said application to Anoka County. EDA ACTION: RESOLUTION 2008-02 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA AUTHOIUZING APPLICATION FOR 2008 ANOKA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING FOR THE PURPOSE OF SUBSIDIZING THE ACQUISITION OF TI-IE COMMERCIAL PROPERTIES AT 3700 AND 3706 CENTRAL AVENUE (CHUTNEY INDIAN GRILL) IN THE AMOUNT OF $300,000, TO SUBMIT SAID APPLICATION TO ANOKA COUNTY WHEREAS, the City identified the area including the former Beecroft property, two non-conforming, single-family homes, and the Chutney Indian Grill as a redevelopment priority in January 2002; and, WHEREAS, the use ofCDBG grants for acquisition is consistent with the program's national objective of aiding in the prevention and elimination of slums or blight; and, NOW, THEREFORE BE IT RESOLVED that the Columbia Heights EDA acts as the legal sponsor for the 2008 Community Development Block Grant Program to be submitted on January 14,2008; and, BE IT FURTHER RESOLVED that the Columbia Heights EDA has the legal authority to apply for financial assistance, and the intuitional, managerial and financial capability to ensure adequate project administration; and, BE IT FURTHER RESOLVED that the Columbia Heights EDA has not violated any federal, state, or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, connict of interest or unlawful or corrupt practice; and, BE IT FURTHER RESOLVED that the mayor and city manager are herby authorized to execute such agreements as are necessary to implement the project(s) on behalf of the applicant; and, NOW, THEREFORE BE IT RESOLVED that the Columbia Heights Economic Development Authority has authorized staff to submit an application for $300,000 for subsidizing the acquisition of properties at 3700 and 3706 Central Avenue (Chutney Indian Grill). I certify that the above resolution was adopted by the Columbia Heights Economic Development Authority. PASSED TI-llS DAY OF OFFERED BY: SECONDED BY: ROLL CALL: ,2008 President Walter R. Fehst - Executive Director