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HomeMy WebLinkAboutEDA MIN 01-23-08 ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES January 23, 2008 CALL TO ORDER/ROLL CALL The meeting was called to order at 7:02 p.m. Present: Gary L. Peterson, Bobby Williams, Bruce Nawrocki, Tammera Diehm, and Bruce Kelzenberg Absent: Marlaine Szurek PLEDGE OF ALLEGIANCE CONSENT AGENDA Election of Officers Diehm stated the current officers are President, Gary Peterson-, Vice President, Pat Jindra, and Secretary/Treasurer, Bruce Kelzenberg and that she would like to offer a motion. Motion by Diehm, second by Nawrocki, to nominate Peterson for President and Kelzenberg for Secretary/Treasurer. All ayes. Motion Carried. Motion by Peterson, second by Diehm, to nominate Szurek for Vice President. All ayes. Motion Carried. Minutes and Financial Reports Approve Minutes of November 27, 2007 regular meeting and the Financial Report and Payment of Bills for the months of November and December, 2007 on Res. 2008-01. Nawrocki asked what the two Bonestroo checks were for. Clark stated they are for the Comprehensive Plan. Motion by Kelzenberg, second by Williams, to Adopt Resolution 2008-01, for the Financial Report and Payment of Bills for the months of November and December 2007. All ayes. Motion Carried. HRA RESOLUTION 2008-01 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR OCTOBER, NOVEMBER AND DECEMBER OF 2007 AND PAYMENT OF BILLS FOR THE MONTHS OF OCTOBER, NOVEMBER AND DECEMBER OF 2007. WHEREAS, the Columbia Heights Housing and Redevelopment Authority (HRA) 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 HRA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the HRA 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 October, November, December of 2007 and the list of bills for the months of October, November, December of 2007 are attached hereto and made a part of this resolution; and WHEREAS, the HRA 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 Housing & Redevelopment Authority that it has examined the attached financial statements and list of biHs, 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 Housing & Redevelopment Authority. Passed this 23rd day of January 2008. Economic Development Authority Meeting Minutes January 23, 2008 Page 2 of 4 BUSINESS ITEMS Adopt Resolution 2008-02, 2008 CDBG Application Scott Clark, Community Development Director stated each year Anoka County has CDBG dollars available for redevelopment that the EDA applies for. In January 2002, the City Council identified the area at the corner of 37'" and Central Avenues as a redevelopment priority. The properties included the Beecroft building, two non-conforming single-family homes, the Chutney Indian Grill and adjacent parking lot The City used CDBG funds to acquire and demolish the two single-family homes and the Beecroft building. On October 23rd the EDA entered into a Preliminary Development Agreement with Chris Little of 3i'l & Central LLC to redevelop the properties. He 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 is asking the EDA to approve a CDBG application in the amount of $300, 000 for subsidizing the acquisition of the Chutney Indian Grill and adjacent parking lot for redevelopment purposes. Nawrocki stated he had three issues with this motion: 1) the developer will probably want some funding for his project; 2) he found out the application was already sent out and felt it should have come before this body or City Council prior to submittal to Anoka County; and 3) he felt the grant funds should be used for the Public Safety building. Schumacher stated the County ranks applications by high, medium and low. Fire stations are a medium funding application. The county has already spent the dollars that would go towards that type of application. This gap funding for the 37'" & Central project is needed as we can no longer use eminent domain to acquire properties needed for redevelopment The developer has to pay an extremely high price to obtain the Chutney property. Diehm asked Schumacher if the County would let us reallocate the funds for a medium project. Schumacher stated the County has been relatively cooperative in the past, you can get 80% through a development project until it actually starts construction, they have been very helpful with the Industrial Park, Sarna's, and Mady's were we have had to adjust the dollars around to a different project Motion by Diehm, second by Williams, 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. Upon Vote: Nawrocki-nay, Diehm-aye, Kelzenberg-aye, Peterson-aye, and Williams-aye. Motion Carried. RESOLUTION 2008-02 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA AUTHORIZING APPLICATION FOR 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 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 of CDBG grants for acquisition is consistent with the program's national objective of aiding in the prevention and elimination of slums or blight; and, Economic Development Authority Meeting Minutes January 23,2008 Page 3 of4 NOW, THEREFORE BE IT RESOLVED that the Columbia Heights EDA acts as the legal sponsor forthe 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 thai the Columbia Heights EDA has not violated any federal, state, or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict 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). Passed this 23rd day of January, 2008 Redevelopment Update Comforts of Homes Schumacher stated there is about a million dollars invested into the site. Mr. Winges, the owner of Comforts of Home, indicated last year he did two other buildings similar to this one. He is in the process of selling those buildings. Like everyone else, financing is extremely tight now. They did an early start on it, invested their own money and are now having problems putting together the balance of the funding. They are going to go ahead and complete it this summer. Scott and I will be meeting with Mr. Winges next month. Winges feels that he can finish getting financing within the next month, by using smaller banks. Industrial Park Schumacher stated Ryland has just closed on two additional building pads that have seven units in each one. One building is already under construction. They are averaging 2 to 3 sales a month. Clark stated Dave Hanson, Realife Coop has 14 commitments and 20 highly interested people lined up for the old Buckles property. Diehm stated residents told her that their reservation checks were returned with a notice that they were not moving forward. Schumacher stated he was told they had 14 reservations and that David Hanson gets his financing from HUD, who requires 60 percent commitment, but because there had been another interest in the community for a similar type of a development coop, HUD increased it to 80 percent. After talking to Brad Schafer yesterday, he stated he was thinking of doing two smaller buildings in the same location, in phases. 39th & Central Schumacher stated Frattallone's Ace Hardware is still working to put together development plans for a 14,000 square foot building at the old Burger King site. They spent the last 60 days working with the MPCA finalizing clean up standards. Their response plan has been completed, which is a requirement of the MPCA. Staff will be meeting with Frattallone and his builder next Tuesday to take a look at the site plan and will be bringing this development agreement to the EDA in March or April. Schumacher stated on the Mady's Site he and Scott have met with Pastor, an interested party with ideas of putting a shopping center on the site and will keep the board informed. 37111 & Central Schumacher stated Chris Little of 371h & Central LLC is working on a development agreement for the site. He will be going to the planning commission with a site plan next month. We are going to have problems with any development along Central A venue as we only have 109 feet of Economic Development Authority Meeting Minutes January 23,2008 Page 4 of 4 depth and with our current zoning ordinance it makes redevelopment very difficult. The site plan he is submitting will have a 9,600 square feet building, adequate parking and drive line plans under the resident ordinance requirements. Grand Central Clark stated he has made contact with Oavid Kloiber as far as the Nedegaard residential piece. Mr. Khoratty, the gentlemen that took the commercial property along Central Avenue, who is suppose to come to staff with his plans in about two weeks to review a number of key pieces. Staff did re-emphasize to him that we have a $950,000 grant from Met Council that ends in Oecember of this year. We will also have to enter into a new commercial redevelopment agreement for this. 49th & Central Clark stated Taco Bell representatives have contacted staff and are going to come in next week to start the process again with new renderings, which will not involve the car wash site. We told them we felt in the interest of the City, if there was any kind of affirmative action with Taco Bell, they would have to at least include getting rid of the car wash building as part of that. Other Business Clark stated in his experience, when you have a down turn in the economy and you have redevelopment projects sitting out there that are 50% full or vacant, that a lot of the time the fall back position is what he calls the least common denominator and in this market, that is rental properties. As commissioners you should be thinking about that. Nawrocki stated rental housing has been the topic of more than one discussion and the he would be strongly opposed to anymore rental housing units. Adiournment President, Peterson, adjourned the meeting at 7:35 p.m. Respectfully submitted, c~~e~ Community Development Secretary H:\EDAminutes2008\ 1-23-2008