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CITY OF COLUMBIA HEIGHTS
59() 40th Avenue N.E., Columbia Heights, MN 55421-3Sn (763) 706-3600 TDD (763) 706-3692
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AGENDA
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
Monday, July 28, 2008 SPECIAL MEETING
6:15 p.m., City Hall, Conference Room 1
1. Call to Order/Roll Call
2. Pledge of Allegiance
3. Resolution 2008-08, First Amendment to Contract for Private
Redevelopment-with New Perspective
Motion: Move to waive the reading of Resolution 2008-08, there being
an ample amount of copies available to the public.
Motion: Move to Adopt Resolution 2008-08, a Resolution Approving a
First Amendment to Contract for Private Redevelopment between the
Columbia Heights Economic Development Authority, the City of
Columbia Heights, Minnesota and New Perspective Fund III, LLC; and
furthermore, to authorize the President and Executive Director to into an
agreement for the same.
4. Resolution 2008-09 and 2008-10, 2009 Budget and Special Benefit
Levy
Motion: Move to waive the reading of Resolution 2008-09, there being
an ample amount of copies available to the public.
Motion: Move to Adopt Resolution 2008-09, a Resolution of the
Economic Development Authority in and for Columbia Heights (EDA)
Adopting the 2009 Budget and Setting the EDA Levy.
Motion: Move to waive the reading of Resolution 2008-10, there being
an ample amount of copies available to the public.
Motion: Move to Adopt Resolution 2008-10, a Resolution 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, 2009.
5. Verbal Status Report-4th & Central Redevelopment
6. Establishing Next Meeting Date-August 11, 2008
7. Adjournment
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPL.OYMENT OR THE PROVISION OF SFRVICES
EQUAL OPPORTUNITY EMPLOYFR
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
;pecla eetmg 0 : tHy. ,
AGENDA SECTION: Business Items ORIGINATING EXECUTIVE
NO: 3 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Resolution 2008-08, First Amendment to BY: Scott Clark BY:
Contract for Private Redevelopment-New DATE: July 22, 2008
Perspective Senior Living Abatement,
S . 1M
l' J I 28 2008
BACKGROUND: On May 28, 2008 the Economic Devclopment Authority (ED A) heard a presentation
by New Perspective Senior Living and their interest in taking ovcr the Comforts of Home Project, which
was in the process of going into foreclosure. Ncw Perspective was seeking public assistance in the form
of tax abatemcnt and staff started ncgotiations on the same based on direction from the EDA. On June
16, 2008 the EDA was presentcd with a business point mcmorandum, dated June 12, 2008 from Ehlers
and Associates, which described the terms of a proposed five-year tax abatement (attached). In general
terms, thc City's abatcment contribution only occurs if the aggregatc taxes (County, City and School)
excccds a given target amount. Attached is thc "First Amcndmcnt to Contract for Private
Redevelopmcnt" (this is a three party Agreement between the City, EDA and Ncw Perspective Fund III,
LLC) and Section 3.7 dctails out both the tax targct amounts and the overall tax abatement proccss.
Based on the City resolution (the Council needs to act on both the Agrcement and approvc the actual
abatement) thc aggrcgate abatement paid to thc Rcdcvelopcr during the abatemcnt pcriod will not cxcecd
$150,000. It is anticipated that New Perspective will start construction in the fall of this year and that the
initial abatement year will begin in 2011, which will be the first year offull taxes.
RECOMMENDATION: Staflrecommends Adoption of Resolution 2008-08, "First Amendment to
Contract For Private Redevclopment" by and between the City of Columbia Heights, Columbia Heights
Economic Development Authority and Ncw Perspective Fund III, LLC.
RECOMMENDED MOTION:
Move to waivc the rcading of Rcsolution 2008-08, there being an ample amount of copies available to
the public.
Move to Adopt Rcsolution 2008-08, a Resolution Approving a First Amendment to Contract for Private
Redevelopment between the Columbia Heights Economic Development Authority, thc City of Columbia
Heights, Minnesota and New Perspective Fund III, LLC; and furthermore, to authorize the President and
Executive Director to into an agrcement for the same.
Attachments: Resolution 2008~08, First Amendment fo Contract fo/' Private Redevelonment, Ehlers Lelfel'
EDA ACTION:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2008-08
RESOLUTION APPROVING A FIRST AMENDMENT TO CONTRACT
FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA
HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF
COLUMBIA HEIGHTS, MINNESOTA AND LIGHTHOUSE ACQUISITION
GROUP, LLC
BE IT RESOLVED By the Board of Commissioners (the "Board") of the Columbia Heights
Economic Development Authority (the "Authority") as follows:
Section 1. Recitals.
1.01. The Authority and Pratt Ordway, LLC dba Pratt Ordway Properties (the "Original
Redeveloper") entered into a Contract for Private Redevelopment dated as of November 28, 2006
(the "Original Contract") providing for redevelopment of certain property (as defined in the Original
Contract, the "Redevelopment Property") located in the City of Columbia Heights, Mimlesota (the
"City").
1.02. The Original Redeveloper assigned all of its rights and interests in the Original
Contract to Columbia Heights Cor-I, LLC ("Cor-I") under an assignment and assumption
agreement, dated as of January 26, 2007.
1.03. Lighthouse Acquisition Group, LLC (the "Redeveloper") has entered into a
purchase agreement with COH for the Redevelopment Property and will assign all of its rights and
interests in the purchase agreement and the Redevelopment Property to a corporate entity created by
the Redeveloper for the sole purpose of owning and redeveloping the Redevelopment Propetty (the
"New Entity"). Upon closing on the purchase agreement, Cor-I will assign all of its rights and
interests in the Original Contract (as amended by the First Amendment described herein) to the New
Entity, and the New Entity will become the Redeveloper under the Original Contract and the First
Amendment.
1.04. The Original Redeveloper failed to complete construction of a senior rental housing
facility (as defined in the Original Contract, the "Minimum Improvements") on the Redevelopment
Property and the Redeveloper has requested certain assistance from the City in order to complete
such improvements.
1.05. The Original Contract is being amended (the "First Amendment") to, among other
items, include the City as a party to the Original Contract, as well as to provide for a property tax
abatement to the Redeveloper.
336690v3 AlP CL205-34
Section 2. Authority Approval; Further Proceedings.
2.01. The First Amendment as presented to the Board is hereby in all rcspects approvcd,
subject to modifications that do not altcr the substancc of the transaction and that are approved by
the City and thc President and Executive Director of the Authority, provided that execution of the
documents by such officials shall be conclusive evidence of approval.
2.02. The Presidcnt and the Executive Director are hercby authorized to execute on behalf
of the Authority the First Amendment and any documents referenccd therein, requiring cxecution by
the Authority, and to carry out, on behalf of the Authority, its obligations thereundcr.
Approved by the Board of Commissioners ofthe Columbia lIeights Economic Development
Authority this 28th day of July, 2008.
President-Gary 1. Pcterson
ATTEST:
Executive Director-Walter R. Fehst
336690v3 AJP CL205-34
Execution Copy
FIRST AMENDMENT
TO
CONTRACT
FOR
PRlV ATE REDEVELOPMENT
By and Between
CITY OF COLUMBIA HEIGHTS, MINNESOTA,
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
COLUMBIA HEIGHTS, MINNESOTA,
and
LIGHTHOUSE ACQUISITION GROUl>, LLC
Dated as of:
,2008
This document was drafted by:
KENNEDY & ORA VEN, Chartered (AJP)
470 US Bank Plaza
200 South Sixth Street
Minneapolis, Minnesota 55402
Telephone: (612) 337-9300
336135v8 All' CL205-34
FIRST AMENDMENT TO
CONTRACT FOR PRIVATE REDEVELOPMENT
TI-IIS FIRST AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT (this
"First Amendment"), is made as of the day of ,2008, by and between the CITY
OF COLUMBIA HEIGHTS, a municipal corporation and political subdivision of the State of
Mhmesota (the "City"), the COLUMI3IA HEIGHTS ECONOMIC DEVELOPMENT
AUTHORITY, a public body corporate and politic and political subdivision of the State of
Minnesota (the "Authority"), and LIGHTHOUSE ACQUISITION GROUP, LLC, a limited liability
company authorized to do business under the laws of the Statc of Minnesota (the "Redeveloper").
WITNESSETH:
WHEREAS, the Authority and Pratt Ordway, LLC, dba Pratt Ordway Properties (the
"Original Redeveloper") entered into that cet1ain Contract for Private Redcvelopment, dated as of
November 28, 2006 (the "Original Contract") providing for rcdevelopment of cet1ain property in thc
City; and
WHEREAS, the Original Redeveloper assigned all of its rights and interests in the Original
Contract to Columbia Hcights COH, LLC ("COH") under an assignment and assumption
agreement, dated as of January 26,2007; and
WHEREAS, the Redeveloper has entered into a purchase agreement with COH for the
Redevelopment Property (as defined in the Original Contract); and
WHEREAS, the Original Redeveloper and its successors and assigns failed to complete
construction of the Minimum Improvements and the Redeveloper has requested certain assistance in
order to complete such improvements; and
WHEREAS, pursuant to Minnesota Statues, Sections 469.1812 through 469.1815, as
amended (the "Abatement Act"), the City is authorized to abate a portion of its real property taxes
on the Redevelopment Property (the "Abatement") to increase the City's tax base and facilitate
redevelopment; and
WHEREAS, the partics have determined a need to modify the Original Contract to add the
City as a party, providc for paymcnt of the City's administrative costs in regards to this First
Amendment, provide for the Abatement, and address a change in construction schedules as further
describcd herein; and
WHEREAS, all capitalized but undefined terms in this First Amendment shall have the
meanings as assigncd in the Original Contract. Defined terms in this First Amendment shall be
incorporatcd into the Original Contract.
336135v8 All' CL205-34
1
NOW, THEREFORE, in consideration of the premises and the mutual obligations of thc
parties hereto, each of them does hereby covenant and agree with the other as follows:
1. A new Section 3.7 to the Original Contract is added and reads as follows:
Section 3.7. Tax Abatement. The City will grant the Abatement to the Redeveloper
under the following terms and conditions:
(a) Generally. The Redeveloper is eligible to receive the Abatement each tax-payable
year from 2011 through 2015 (the "Abatement Period"). The Redeveloper will receive the
Abatement in a specific tax-payable year during the Abatement Period if there is no continuing
Event of Default under the Original Contract (as amended by this First Amendment), and only ifthe
amount of aggregate taxes from the Redevelopment Property, payable to the City, Anoka County,
Independent School District No. 13, and any special taxing districts (collectively, the "Aggregate
Taxes"), equals or exceeds the following numbers, as shown on the following chart:
Taxes Pavable Year Al.w:rel!:ate Taxes
2011 $80,000
2012 82,400
2013 84,872
2014 87,418
2015 90,041
(b) City Contribution. If the Aggregate Taxes exceed the amounts listed in Section
3.7(a) for any tax-payable year during the Abatement Period, the City agrees to pay to the
Redeveloper a portion of the City's share of the Aggregate Taxes for that specific tax-payable year
(the "City Contribution"), as an abatement under the Abatement Act. The City Contribution will be
the City's share of property taxes fl'om the Redevelopment Property in each specific tax-payable
year during the Abatement Period in which the Redeveloper's Aggregate Taxes exceed the amounts
in Section 3.7(a), minus the City's share of the property taxes from the Redevelopment Propelly in
tax-payable year 2009. The City will levy the City Contribution, if any, using its best estimates and
projections of the Redevelopment Property's tax capacity and the City's tax rates thereon for each
tax-payable year within the Abatement Period.
(c) Excess City Contribution. If the City levies for the City Contribution during the
Abatement Period based on its best estimates and projections of the Redevelopment Property's tax
capacity and the City's tax rates thereon, and the Redeveloper is not eligible for the Abatement
because the Aggregate Taxes do not exceed the amount for a specific tax-payable year pursuant to
Section 3.7(a), the City will irrevocably credit that specific City Contribution into a subaccOlmt of
the City. If the Redeveloper later qualifies for the City Contribution in a given tax-payable year
during the Abatement Period, the City will disburse the flmds already irrevocably credited to the
Redeveloper. 11: at the end of the Abatement Period, the balance of the City Contribution has not
been credited to the Redeveloper, and the Redeveloper has not become otherwise eligible for the
City Contribution, the City will use the remainder of the City Contribution to reduce its general levy
for the tax-payable year following the expiration afthe Abatement Period.
336135v8 AlP CL205-34
2
(d) Shortage of City Contribution. If the City levies for the City Contribution during the
Abatement Period based on its best estimates and projections of the Redevelopment Property's tax
capacity and the City's tax rates thereon, and the Redeveloper is both eligible for the Abatement and
an increased City Contribution because the Aggregate Taxes are higher than projected by the City,
the City will levy the excess amount of the City Contribution for the following tax-payable year,
whether or not the Abatement Period has expired. During the Abatement Period, the excess City
Contribution will be in addition to the regular City Contribution estimated to be due to the
Redeveloper for the following tax-payable year, if any.
(e) Payment of City Contribution. lfthe City determines that a City Contribution is due
to the Redeveloper in a specific tax-payable year during the Abatement Period, the City will
disburse the City Contribution to the Redeveloper on August I of that tax-payable year and the next
following February I. For example, if a City Contribution is due to the Redeveloper in 2011, half of
the City Contribution will be payable on August 1, 2011, and the second half will be payable on
February 1,2012.
(f) Abatement Resolution. The City Council of the City has approved the Abatement
pursuant to a resolution adopted after a duly noticed public hearing on July 28, 2008. All
determinations of the City regarding the Redeveloper's eligibility for the Abatement and the amount
of the City Contribution are controlling.
2. Section 4.3(a) of the Original Contract is modified to read as follows:
(a) Minimum Improvements. Subject to Unavoidable Delays, the Redeveloper must
commence construction ofthe Minimum Improvements by February 1,2009 and must substantially
complete construction of the Minimum Improvements by January 31, 2010. All work with respect
to the Minimum Improvements to be constructed or provided by the Redeveloper on the
Redevelopment Propelty shall be in substantial conformity with the Construction Plans as submitted
by the Redeveloper and approved by the Authority and the City. If the Redeveloper is making
substantial progress with respect to the Minimum Improvements and is unable to meet one or more
of the above-referenced deadlines, the Authority and the Redeveloper shall negotiate in good faith
for a reasonable period to extend the time in which necessary action(s) must be taken or occur, the
lapse of which time would otherwise constitute a default under this Agreement.
3.
language:
Section 3.5 of the Original Contract is deleted and replaced by the following
Section 3.5. Pavment of Administrative Costs. The parties expressly acknowledge to
each other that the Redeveloper is responsible for the City's Administrative Costs in the negotiation
and preparation of this First Amendment to the Original Contract and any further amendments
thereto. "Administrative Costs" means out-of-pocket costs incurred by the City in cOlmection with
the negotiation and preparation of this First Amendment, and other documents, agreements and
resolutions in connection with the Redevelopment Property or the Abatement. In order to secure
pmtial payment of the City's Administrative Costs, the Redeveloper has delivered $2,000 to the
City. The City will utilize such funds to payor reimburse itselffor the Administrative Costs. If the
City determines that the Administrative Costs will exceed $2,000 and that additional security is
336135v8 AJP CL205-34
3
required, the City shall notify the Redeveloper of the amount of such additional security. Within ten
calendar days of receipt of such notice, the Redeveloper shall deliver to the City the required
additional security. Failure of the Redeveloper to deliver the requested additional security will
result in the City suspending its obligations under the Original Contract and any amendments
thereto until the security is provided.
4. The definition of "Minimum Improvements" in Section I.I of the Original Contract
is amended to read as follows:
"Minimum Improvements" means the constlUction on the Redevelopment Property of a
minimum 58-unit rental housing facility intended primarily for occupancy by seniors.
5. The Authority has represented that the actual costs of the Demolition Work (as
defined in the Original Contract) are $126,616.89. The Authority certifies that the Redeveloper is
not responsible for payment of the costs of Demolition Work exceeding $115,000, however, if the
Redeveloper shall fail to complete constl'llction of the Minimum Improvements by the date
specified in Section 4.3(a) of the Original Contract (as amended by this First Amendment), the
Redeveloper shall promptly repay to the Authority the base cost of the Demolition Work paid by the
Authority ($115,000).
6. The Original Contract remains in full force and effect and is not modified except
as expressly provided herein, however, the Authority certifies that the Redeveloper is not
responsible and may not be penalized under the Original Contract or this First Amendment for
any default, breach of representation, or breach of warranty made by the Original Redeveloper or
COR.
7. This First Amendment shall become effective on the closing date of the transfer
of the Redevelopment Property to the Redeveloper. If the Redeveloper does not close on the
Redevelopment Property by January 31, 2009, this First Amendment shall not become effective
and will not be binding on the parties hereto.
8. The Authority and the City understand that the Redeveloper will assign all of its
rights and interests in the purchase agreement, the Redevelopment Property and this First
Amendment to a corporate entity created by the Redeveloper for the sole purpose of owning and
redeveloping the Redevelopment Property (the "New Entity"). Furthermore, upon the closing of the
purchase agreement on the Redevelopment Property, COIl will assign all of its rights and interests
in the Original Contract (as amended by this First Amendment) to the New Entity. The
Redeveloper and the New Entity shall provide evidence to the Authority and the City that the
transfer and assignment of the rights and interests described in tllls paragraph have occurred. Upon
such notification, the New Entity will be treated as the Redeveloper under the Original Contract and
this First Amendment.
9. The Redeveloper will file this First Amendment with the oflices of the County
Recorder and Registrar of Titles, at the Redeveloper's cost.
336135v8 AJP CL205-34
4
IN WITNESS WHEREOF, the City and the Authority have caused this First Amendment
to be duly executed in their names and the Redeveloper has caused this First Amendment to be
duly executed in its name and behalf as of the date first above written.
CITY OF COLUMBIA HEIGHTS,
MINNESOTA
By
Its Mayor-Gary L. Peterson
By
Its City Manager-Walter R. Fehst
STATE OF MINNESOT ^ )
) SS.
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this _ day of
2008 by Gary Peterson and Walter Fehst, the Mayor and City Manager, respectively, of the City of
Columbia Heights, Mitmesota, on behalf of the City.
Notary Public
336135v8 AlP CL205-34
S-l
COLUMBIA HEIGHTS ECONOMIC
DEVELOl>MENT AUTHORITY
By
Its President -Gary L. Peterson
By
Its Executive Dircctor-Walter R. Fchst
STATE OF MINNESOTA )
) SS.
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this _ day of
, 2008 by Gary Peterson and Walter Fehst, the President and Exccutive
Director, respectively, of the Columbia Heights Economic Development Authority, on
behalf of the Authority.
Notary Public
336135v8 AlP CL205.34
S-2
LIGHTHOUSE ACQUISITION GROUP,
LLC
By
Its
STATE OF MINNESOTA )
) SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
, 2008 by , the of
Lighthouse Acquisition Group, LLC, a Minnesota limited liability company, on behalf of
the limited liability company.
Notary Public
336135v8 AJP CL205-34
S-3
EHLERS
LE^DEf~S IN PUBLIC FINANCE:
0 To:
:E From:
W Date:
:E Subject:
Overview
Scott Clark - Community Development Director
Stacie K vilvang - Ehlers and Associates
June 12, 2008
Lighthouse Senior Housing Development
New Perspective Senior Living requested abatement assistance from the City in the amount of
approximately $325,000. You requested that Ehler's complete a review of the Developer's
proforma to determine if the request is warranted, as well as complete tax abatement runs to
determine how much assistance could be made available to the Developer.
Upon review of their proforma, we determined that although the requested amount of
assistance was not warranted, some form may be needed to provide them some assurance that
they could meet their required cash-on-cash returns for their equity investors. After discussing
our findings with the developer, we coneluded that their main area of concern or largest
variable was the amount of taxes they would be required to pay on the project on an annual
basis. They were comfortable financially with an annual payment of $80,000, inflated at a
nominal amount annually (3% as all their expenses are inflated).
Based upon these discussions we would recommend that the City only provide tax abatement
assistance if needed on an annual basis as follows:
1. The term of assistance will last for five (5) years (2010-2014). It is anticipated that the
development would be refinanced at that time and would not longer require any
coverage on the taxable market value.
2. The basis for an annual analysis of need is the amount of aggregate taxes paid should
not exceed $80,000 (inf1ated annually at 3%) as shown in the table below:
$3,156.000
$3,340,680
$3.530,900
$3,726,800
$3,928.600
LEADERS IN PUBLIC FINANCE
t
3060 Centre Pointe Drive
Roseville, MN 55113-1105
Phone: 651-697-8506 Fax: 651-697-8555
skvilvang@ehlers-inc.com
Scott Clark
Lighthouse Senior Housing
June 12,2008
Page 2
3. To the extent the aggregate taxes exceeds the annual amount listed above, the City
agrees to abate its portion of incremental taxes (similar to TIF) generated from the
project, up to the maximum of City incremental taxes available as noted in the chart
below:
Taxes Maximum Annual
Payable Year City Tax Abatement
2010 $27,388
2011 $28,300
2012 $29,249
2013 $30,236
2014 $31,260
TOTAL $146,433
4. The City will utilize the proposed assessed market value for the project as determined
by Anoka County to complete the calculation of need for each year (i.e. utilize
proposed value for pay 2009).
Based upon discussions with the County Assessor, he was of the opinion that the value of the
project would likely be below the $81,000/unit value as shown in item #2 on the previous
page. In the event that market conditions change and valuations change significantly to
become higher than projected, following is an analysis showing the annual abatement required
by the City (based upon a 17% increase in value):
-....
. . .
.. .
~..
. . . .
~
$80.204 I
$94.067 I
$13,863 I
$81,000
$95,000
$14,000
If we assume that the City is required to abate $13,900 in taxes to the project for all five (5)
years, this amount would total $69,315 in assistance. As you can see, even with using an
extremely high inflation factor for valuation, the total abatement that would be required is
about half of the anticipated incremental taxes generated from the project (total fi'om chart in
#3 above is $146,433).
Overall, this is a way for the City to provide a mechanism to give the developer the financial
confidence it needs to assure this project can be completed and is a low risk proposition for
the City.
Please contact me at 651-697-8506 with any questions or if you require further information.
COLUMBIA HEIGl-ITS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Special Meeting of: July 28, 2008
AGENDA SECTION: Busincss Item ORIGINATING EXECUTIVE
NO: 4 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Adopt Resolution 2008-09 and 2008-10, BY: Scott Clark BY:
Economic Development Authority DATE: July 8, 2008
2009 Budget and Levy
BACKGROUND: This memorandum presents the proposed 2009 Economic Development Authority
(EDA) budget. The focus of the EDA since 2002, has been redevelopment of specific areas and recently
an increased emphasis on revitalizing the City's housing stock. The EDA's budget total is $347,561
which is raised by: 1) An EDA levy of$80,000 which is the same as the 2008 amount; and 2) A special
benefit levy authorized under the HRA Statutcs in the amount of$267,561. The "HRA levy" is an
increase of$71,000 fl'om 2008 and represents an increasc in the new levy amount authorized by State
statutes (if the EDA elects to continue levying at 100%). It is important to remember that the EDA's
budgeted revenue is combined with the Community Development Departments' other revenue sources
(permits and licensing) to make up the total Department budget (2009 projected expenditure of $645,309
with an off-setting revenue of$647,603). The HRA increase is necessary to balance the overall
Departments' budget due to a projected $60,000 to $70,000 decrcase in building permit fees.
RECOMMENDATION: Staff recommends Adoption of Resolutions 2008-09 and 2008-10 as written.
RECOMMENDED MOTION:
Move to waive the reading of Resolution 2008-09, there being an ample amount of copies available to
the public.
Move to Adopt Resolution 2008-09, a Resolution of the Economic Development Authority in and for
Columbia Heights (EDA) Adopting thc 2009 Budget and Setting thc EDA Levy.
Move to waive the reading of Resolution 2008-10, there being an ample amount of copies available to
the public.
Move to Adopt Resolution 2008-10, a Resolution Authorizing the Lcvy of a Special Benefit Levy
pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, and Approval of a Budget for Fiscal
Year 2009.
Attachments: Resolutions 2008-09 and 2008-/0,2009 BudQel Documents
EDA ACTION:
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR COLUMBIA HEIGHTS
EDA RESOLUTION 2008-09
RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR
COLUMBIA HEIGHTS (EDA) ADOPTING THE 2009 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
$347,561 for year 2009.
2. The EDA adopts and recommends to the City Council for approval a levy of $80,000
for year 2009.
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:
,2008.
Attest by:
Gary L. Peterson, President
Walter R. Fehst, Executive Director
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2008-10
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 2009
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 .0185 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 .0185
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 2009; and
WHEREAS, the EDA has before it for its consideration a copy of a budget for its
operations for the fiscal year 2009 and the amount of the levy for collection in 2009 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 $347.561 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
SJI3-23G025vl
CL205-3
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 .0185 percent of taxable market value
in City, or $267.561 with respect to taxes payable in calendar year 2009.
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 2009 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
,2008.
Gary L. Peterson, President
Walter R. Fehst, Executive Director
SJB-236025vl
CL205-3
2
CITY OF COLUMBIA HEIGHTS, MINNESOTA
BUDGET 2009
Functional Area of Community Development
Budget Narrative
Activity Description
Protective Inspection
201-42400
Protective Services Include:
>Building permitting, plan review and inspection
>Liquor, contractor, cigarette, misc. licensing
>Land use permitting and code enforcement
>Residentiallnspection before sale (RIBS)
Community Development Services
201-46310
Community Development Services Include:
>Redevelopment
>Housing Rehabilitation and Replacement
>Economic Development
These activities fall under the purview of the Economic Development Authority and City
Council.
Budget comments forms.xls
CITY OF COLUMBIA HEIGHTS, MINNESOTA
BUDGET 2009
Functional Area of Community Development
Budget Narrative
Objectives
Protective Services
201-42400
1) Maintain effective and timely building inspections.
2) Implementation of Residential Inspection Before Sales Program
3) Staffing of Planning Commission
Community Development Services
201-46310
1) Continue in-fill redevelopment efforts
2) Staffing of Economic Development Authority and Housing and Redevelopment
Authority
3) Increased emphasis on development of housing programs targeted to increasing
neighborhood integrity.
Budget comments forms.xls
CITY OF COLUMBIA HEIGHTS, MINNESOTA
BUDGET 2009
Functional Area of Community Development
Budget Narrative
Budget Comments
Economic Development Authority
204-46314
Line Item 31011 was increased by $71 ,320. This item reflects a 100% HRA Levy and is
formulated based on new State Statute provisions (Payable 2008 tax value multiplied by
.0185% of a percent versus the previous formula multiplier of .0144% of a percent.)
Maximizing the HRA Levy, including keeping the EDA Levy amount (Line item 31010) at
the 2008 amount of $80,000, allows a balanced budget.
Community Development
201-46310
Line item 32192, Building and Moving Permits iIIistrats an approximate decrease of
$80,000 reflecting anticipated major projects in 2009 including a continued recession in the
housing market.
Line item 32197, reflects a new revenue stream of $30,000 for fees collected through the
Residential Inspection Before Sale Program. Of this amount, $20,000 will be expended for
private inspections and this cost is listed under 201-42400-3050.
Parkview Villa North
203-46330
Line item 5120, Building and Improvement, expenditure of $170,628 reflects the proposed
Capital Fund Program work projects. The 2008 budget of $417,156 was disproportionatly
high due to the need of completing fiscal year grant funds for years 2005, 2006, and 2007.
Line item 3060, Management Services reflects the new management and operation
contract with Common Bond who took over management in February 2008. The total
contract amount equals $223,800 and is divided between Parkview Villa North and South.
Parkview Villa South
213-46340
Line item 3060, Management Services reflects the new management and operation
contract with Common Bond who took over management in February 2008.
Budget comments forms.xls
City of Columbia Heights
2009 Revenue Budget work sheet
Department Proposed
201 COMMUNITY DEVELOPMENT FUND Actual Actual Adopted Department Manager Council
0 REVENUE Revenue Revenue Budget Proposed Proposed Adopted
Line Item Description 2006 2007 2008 2009 2009 2009
31010 CURRENT AD VALOREM
31014 AREA WIDE TAX
31020 DELlNQ. AD VALOREM
31910 PENALTIES & INTEREST
32110 LIQUOR, WINE & BEER LICENSE 4,310 4,800 4,600 4,160
32122 FOOD SVC VEHICLES 100 50 50
32161 CONTRACTOR 15,960 14,880 13,000 13,000
32168 OTHER PROFESSIONAL & OCCUP 600 600 600 600
32178 OTHER AMUSEMENT LICENSES 1,740 1,560 1,400 1,400
32181 PLANNING AND ZONING FEES 8,832 2,846 1,500 1,500
32188 OTHER BUSINESS LICENSES 3,080 3,350 1,800 2,100
32191 SPRINKLER PERMIT FEES 10,562 4,572 2,500 4,000
32192 BUILDING & MOVING PERMITS 352,867 223,573 242,270 160,000
32193 ELECTRICAL PERMITS 70 14 50
32194 HEATING PERMITS 36,220 28,655 25,000 25,000
32195 PLUMBING PERMITS 34,825 21,287 22,000 22,000
32197 Res. Insp. Before Sale INSPECTION FEE 7,000 30,000
33160 FEDERAL GRANT
33402 PROP. TAX RELIEF-HOMESTEAD
33422 STATE GRANT
33641 OTHER LOCAL GOVERNMENT GRANT
34112 ADMINISTRATIVE FEES
36210 INTEREST ON INVESTMENTS 7,040 2,100
36216 LOAN INTEREST
36217 BUSINESS LOAN INTEREST
36219 CHANGE IN FAIR VALUE (120) 980
36220 GEN. GOVERNMENT RENTS
36230 CONTRIBUTIONS
36260 SURCHARGE RETENTION 860 500 500
36290 OTHER MISC. REVENUE 179
36294 SURCHARGES COLLECTED 564
36400 PRINCIPAL REPAYMENT - LOANS
37222 OTHER SERVICES
39100 SALE OF LAND
39101 GAIN/LOSS FIXED ASSET
39140 OTHER REF. & REIMBURSEMENT 1,909 35,825 35,782
39203 TRANSFER IN FROM GENERAL FND
39224 TRANSFER IN FROM CONTRIBUTN 1,000
39226 TRANSFER IN FROM COMM DEV
39227 TRANSFER IN FROM HRA
39230 TRANSFER IN FROM EDA ADMIN 246,331 317,228 274,863 347,561
TOTALS: REVENUE 726,070 627,354 632,958 647,603
TOTALS: COMMUNITY DEVELOPMENT F' 726,070 627,354 632,958 647,603
GRAND TOTALS: 726,070 627,354 632,958 647,603
City of Columbia Heights
2009 Revenue Budget work sheet
Department Proposed
204 ECONOMIC DEVELOPMENT AUTH Actual Actual Adopted Department Manager Council
0 REVENUE Revenue Revenue Budget Proposed Proposed Adopted
Line Item Description 2006 2007 2008 2009 2009 2009
31010 CURRENT AD VALOREM 176,929 229,063 78,622 80,000
31011 HRA CURRENT AD VALOREM 196,241 267,561
31014 AREA WIDE TAX 43,368 41,849
31020 DELlNQ. AD VALOREM 2,791 4,530
31800 PAYMENT IN LIEU OF TAXES 412
31910 PENALTIES & INTEREST (21) 298
33160 FEDERAL GRANT
33402 PROP. TAX RELIEF-HOMESTEAD
33407 MARKET VALUE HOMESTEAD CRED 13,113 11,695
33422 STATE GRANT
33641 OTHER LOCAL GOVERNMENT GRANT
34112 ADMINISTRATIVE FEES
36210 INTEREST ON INVESTMENTS 980
36216 LOAN INTEREST
36217 BUSINESS LOAN INTEREST
36219 CHANGE IN FAIR VALUE (20)
36225 NON DWELLING RENTS
36230 CONTRIBUTIONS
36400 PRINCIPAL REPAYMENT - LOANS
39140 OTHER REF. & REIMBURSEMENT
39205 TRANSFER IN FROM BONDS
39227 TRANSFER IN FROM HRA
TOTALS: REVENUE 237,553 287,436 274,863 347,561
TOTALS: ECONOMIC DEVELOPMENT AU 237,553 287,436 274,863 347,561
GRAND TOTALS: 237,553 287,436 274,863 347,561
City of Columbia Heights
2009 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 2006 2007 2008 2009 2009 2009
PERSONAL SERVICES
1000 ACCRUED SALARIES
1010 REGULAR EMPLOYEES 164,913 161,771 162,934 174,472
1011 PART.TIME EMPLOYEES
1012 SEASONAL EMPLOYEES
1020 OVERTIME.REGULAR 386 576 1,500 604
1021 OVERTIME.PART.TIME
1030 VACATION & SICK 5,500 5,095
1050 SEVERANCE PAY 212
1070 INTERDEPARTMENTAL LABOR SERV (34,013) (33,943)
1080 INTERDEPARTMENTAL LABOR CR
1210 P.E.R.A. CONTRIBUTION 9,874 10,109 10,583 11,695
1215 DEFERRED COMP CONTRIBUTION
1220 F.I.C.A. CONTRIBUTION 12,923 13,017 12,580 13,393
1225 FLEX BENEFIT FICA 22
1300 INSURANCE 14,651 17,126 16,812 18,528
1400 UNEMPLOYMENT COMPENSATION
1510 WORKERS COMP INSURANCE PREM 887 931 755 855
1700 ALLOCATED FRINGE
1800 INTERDEPARTMENTAL FRINGE CR
TOTALS: PERSONAL SERVICES 175,121 174,917 205,164 219,547
SUPPLIES
2000 OFFICE SUPPLIES 1,559 1,460 1,351 1,351
2010 MINOR EQUIPMENT 2,036 975 1,283 1,000
2011 COMPUTER EQUIPMENT 128 1,029 1,000
2020 COMPUTER SUPPLIES 770 533 158 500
2030 PRINTING & PRINTED FORMS 48 356 300
2070 TRAINING & INSTR SUPPLIES
2160 MAl NT. & CONSTRUCT MATERIALS
2171 GENERAL SUPPLIES 283 351 453 400
2175 FOOD SUPPLIES 152 180 150
2280 VEHICLE PARTS
2282 GAS, OIL, LUBRICANTS
TOTALS: SUPPLIES 4,800 3,675 4,630 4,701
OTHER SERVICES & CHARGES
3041 ATTORNEY FEES.CIVIL PROCESS
3050 EXPERT & PROFESSIONAL SERVo 12,969 18,590 30,000 40,000
3105 TRAINING & EDUC ACTIVITIES 2,761 1,578 3,996 4,000
3120 EDUCATIONAL REIMBURSEMENT 1,500
3210 TELEPHONE & TELEGRAPH 1,445 718 1,485 884
3220 POSTAGE 614 1,110 740 900
3250 OTHER COMMUNICATIONS 32 103
3310 LOCAL TRAVEL EXPENSE 151 79 615 500
3320 OUT OF TOWN TRAVEL EXPENSE 673 699 800
3410 ADVERTISING EMPLOYMENT
3430 ADVERTISING OTHER
3500 LEGAL NOTICE PUBLISHING 41 475 200
3600 INSURANCE & BONDS 6,741 6,741 4,170 4,170
City of Columbia Heights
2009 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 2006 2007 2008 2009 2009 2009
3810 ELECTRIC 8
3820 WATER
3830 GAS
3840 REFUSE
3850 SEWER
4000 REPAIR & MAl NT. SERVICES 2,502 3,326 3,000 3,316
4050 GARAGE, LABOR BURD.
4100 RENTS & LEASES 35 18 13
4200 PROGRAM ACTIVITIES
4300 MISC. CHARGES
4330 SUBSCRIPTION, MEMBERSHIP 1,164 1,708 1,360 1,800
4342 PROPERTY DAMAGE
4374 EMPLOYEE RECOGNITION
4376 MISCELLANEOUS CIVIC AFFAIRS
4380 COMMISSION & BOARDS 876 750 1,425 1,200
4390 TAXES & LICENSES 975
4395 STATE SALES TAX
4500 ADMINISTRATIVE EXPENSES
4600 LOANS & GRANTS
4700 CREDIT INVESTIGATION
4800 COLLECTION LOSSES
TOTALS: OTHER SERVICES & CHARGE 29,971 35,460 48,241 59,283
CAPITAL OUTLAY
5110 LAND
5120 BUILDING & IMPROVEMENT
5170 OFFICE EQUIPMENT
TOTALS: CAPITAL OUTLAY
OTHER FINANCING USES
7100 OPER. TRANSFER OUT - LABOR 11,494 10,850 11,133 12,194
7200 TRANSFER OUT TO CDBG
7280 TRANSFER OUT TO CAP PROJ
7413 TRANSFER TO CAP IMP DEVELOP (55,000)
8100 CONTINGENCIES 5,695
TOTALS: OTHER FINANCING USES 11,494 (44,150) 16,828
TOTALS: COMMUNITY DEVELOPMENT, 221,386 169,902 274,863
TOTALS: COMMUNITY DEVELOPMENT F' 221,386 169,902 274,863
GRAND TOTALS: 221,386 169,902 274,863 295,725
City of Columbia Heights
2009 Budget work sheet
Department Proposed
201 COMMUNITY DEVELOPMENT FUND Actual Actual Adopted Department Manager Council
42400 PROTECTIVE INSPECTION Expense Expense Budget Proposed Proposed Adopted
Line Item Description 2006 2007 2008 2009 2009 2009
PERSONAL SERVICES
1000 ACCRUED SALARIES
1010 REGULAR EMPLOYEES 191,317 207,650 210,340 224,961
1011 PART-TIME EMPLOYEES
1012 SEASONAL EMPLOYEES
1020 OVERTIME-REGULAR 1,234 927 500 1,445
1030 VACATION & SICK 4,183 4,011
1050 SEVERANCE PAY
1060 MILEAGE ALLOWANCE
1070 INTERDEPARTMENTAL LABOR SERV
1080 INTERDEPARTMENTAL LABOR CR
1210 P.E.RA CONTRIBUTION 11,483 12,974 13,607 15,169
1220 F.I.CA CONTRIBUTION 14,592 15,918 16,129 17,320
1225 FLEX BENEFIT FICA 237 258
1300 INSURANCE 21,784 25,115 25,668 28,512
1400 UNEMPLOYMENT COMPENSATION
1510 WORKERS COMP INSURANCE PREM 1,313 1,023 1,272 1,450
1700 ALLOCATED FRINGE
1800 INTERDEPARTMENTAL FRINGE CR
TOTALS: PERSONAL SERVICES 246,143 267,876 267,516 288,857
SUPPLIES
2000 OFFICE SUPPLIES 610 668 897 900
2010 MINOR EQUIPMENT 2,917 652 5,700 500
2011 COMPUTER EQUIPMENT 1,377 500 300
2020 COMPUTER SUPPLIES 161 238 230
2030 PRINTING & PRINTED FORMS 873 713 1,500
2070 TRAINING & INSTR SUPPLIES
2170 PROGRAM SUPPLIES
2171 GENERAL SUPPLIES 139 328 400 400
2175 FOOD SUPPLIES 44 500 600
2280 VEHICLE REPAIR AND PARTS 1,554 1,293 500 200
2282 GAS, OIL, LUBRICANTS 646 645 519 1,675
TOTALS: SUPPLIES 8,323 3,586 9,967 6,305
OTHER SERVICES & CHARGES
3041 ATTORNEY FEES-CIVIL PROCESS
3045 ATTORNEY FEES-OTHER 2,000 1,000
3050 EXPERT & PROFESSIONAL SERVo 6,206 15,094 5,292 22,000
3105 TRAINING & EDUC ACTIVITIES 4,552 2,023 3,000 2,560
3120 EDUCATIONAL REIMBURSEMENT 508 2,280 1,500
3210 TELEPHONE & TELEGRAPH 737 531 563 705
3211 CELL PHONES 509 668 390
3220 POSTAGE 920 1,095 1,110 1,200
3250 OTHER COMMUNICATIONS 11 720
3310 LOCAL TRAVEL EXPENSE 416 441 300 450
3320 OUT OF TOWN TRAVEL EXPENSE 222 339 350
3500 LEGAL NOTICE PUBLISHING 993 798 1,584 1,000
3600 INSURANCE & BONDS 2,579 2,579 2,270 3,293
3840 REFUSE
City of Columbia Heights
2009 Budget work sheet
Department Proposed
201 COMMUNITY DEVELOPMENT FUND Actual Actual Adopted Department Manager Council
42400 PROTECTIVE INSPECTION Expense Expense Budget Proposed Proposed Adopted
Line Item Description 2006 2007 2008 2009 2009 2009
4000 REPAIR & MAl NT. SERVICES 5,819 5,123 3,920 5,366
4050 GARAGE, LABOR BURD. 510 928 277 200
4100 RENTS & LEASES 1 103
4300 MISC. CHARGES
4310 CREDIT CARD FEES 120 409 400
4330 SUBSCRIPTION, MEMBERSHIP 540 1,220 350 1,190
4380 COMMISSION & BOARDS 200 325
4390 TAXES & LICENSES 15 277 300
4395 STATE SALES TAX 468
4700 CREDIT INVESTIGATION
TOTALS: OTHER SERVICES & CHARGE 24,148 32,326 24,143 42,229
CAPITAL OUTLAY
5150 VEHICLES
5170 OFFICE EQUIPMENT
5180 OTHER EQUIPMENT
TOTALS: CAPITAL OUTLAY
OTHER FINANCING USES
7100 OPER. TRANSFER OUT - LABOR 11,495 10,850 11,134 12,193
7413 TRANSFER TO CAP IMP DEVELOP 191,604 256,867
8100 CONTINGENCIES 9,510
TOTALS: OTHER FINANCING USES 203,099 267,717 20,644 12,193
TOTALS: PROTECTIVE INSPECTION 481,713 571,505 322,270
TOTALS: COMMUNITY DEVELOPMENT F' 481,713 571,505 322,270
GRAND TOTALS: 481,713 571,505 322,270 349,584