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HomeMy WebLinkAboutEDA MIN 01-27-09 ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES JANUARY 27,2009 CALL TO ORDERIROLL CALL The meeting was called to order at 8:52 p.m. OATH OF OFFICE Clark administered the Oath of Office to Nawrocki, Williams, and Peterson. Present: Gary L. Peterson, Bobby Williams, Bruce Nawrocki, Tammera Diehm, Gerry Herringer and Bruce Kelzenberg Absent- Marlaine Szurek City Staff- Executive Director-Walter R. Fehst, Deputy Executive Director-Scott Clark, Assistant Community Development Director-Sheila Cartney and Community Development Secretary-Cher Bakken. PLEDGE OF ALLEGIANCE ELECTION OF OFFICERS Motion by Diehm, second by Kelzenberg, to keep the same officers as last year, which were Peterson for President, Szurek as Vice President and Kelzenberg as SecretarylTreasurer. All ayes. Motion carried. CONSENT AGENDA Approve Minutes of September 23 and December 8. 2008 reqular meetinqs and the Financial Report and Payment of Bills for the months of September. October, November and December on Resolution 2009-01 Herringer asked what the two checks to Bonestroo were for. Clark stated they are payments for their services on the Comprehensive Plan. Nawrocki stated his concern was that the contract only has approximately $3,000 left in it and it was to include the document, resident meetings, and other things that they haven't seen yet. Clark stated at one the Council work sessions in February they would be provided with a memo asking for council to choose either March 4 or March 11 to have a joint meeting between the City Council, Planning Commission and inviting the public to discuss the status of the plan. Resident Donna Schmidt asked if it could be broadcast from the City Council Chambers and run on the cable channel. Peterson directed staff to make the arrangements. Motion by Diehm, second by Kelzenberg, to approve the consent agenda. All ayes. Motion Carried. EDA RESOLUTION 2009.01 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STA TEMENT FOR SEPTEMBER, OCTOBER, NOVEMBER AND DECEMBER 2008 AND PA YMENT OF BILLS FOR THE MONTHS OF SEPTEMBER, OCTOBER, NOVEMBER AND DECEMBER 2008. WHEREAS, the Columbia Heighis Economic Development Authority (EDA) is required by Minnesota Statutes Economic Development AUtllOrity Meeting Minutes January 27, 2009 Page 2 of? Section 469.096, SuM. 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 months of September, October, November and December 2008 and the list of bills for the months of September, October, November and December 2008 are attached hereto and made a pari 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 fonn and accuracy. NOW, THEREFORE BE IT RESOL VED 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 pari hereof, and they are found to be correct, as to fonn and content; and BE IT FURTHER RESOL VED 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 RESOL VED tllis resolul/on and attachments are to be made a pari of the permanent records of the Columbia Heighls Economic Development Authority. BUSINESS ITEMS Resolution 2009-02, Rehab Incentive and Sinqle-Familv Home Deferred Loan Proqram Fundinq Sheila Cartney stated she would like to present items five and six together, as they are both contracts with GMHC. Cartney stated Item five is for the programs GMHC administers for us. The first one is the Rehab Incentive program where you can receive a rebate of up to 10, 12 or 15% of the project cost refunded, which we are looking at funding with $35,000. The second program is the Single-Family Home Deferred Loan Program, which is a low interest rate loan for residents that do exterior home improvements. We are looking to fund this program with $50,000. Item number six is for the Consulting Services Agreement with GMHC, which is funding to administer the programs for us. The cost of this service is $15,000, which would come out of the same 408 fund. Nawrocki asked, if the cost of the programs are the same as last year. Cartney stated they are asking to increase the Rehab Incentive Program from $30,000 to $35,000 and the Single-Family Deferred Home Loan from $45,000 to $50,000. Both of these increases are being requested as the funds were used up before the year was out. Motion by Kelzenberg, second by Nawrocki, to waive the reading of Resolution 2009- 02, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Kelzenberg, second by Williams, to Adopt Resolution 2009-02, a Resolution Approving Funding for the Rehab Incentive Program ($50,000) and the Single-Family Home Deferred Loan Program (SFHD) ($35,000) to the Greater Metropolitan Housing Corporation (GMHC). All ayes. Motion Carried. Economic Development Authority Meeting Minutes January 27, 2009 Page 3 of? EDA RESOLUTION NO. 2009-02 A RESOLUTION APPROVING FUNDING FOR THE REHAB INCENTIVE PROGRAM ($50,000) AND THE SINGLE- FAMIL Y HOME DEFERRED LOAN PROGRAM (SFHD) ($35,000) TO THE GREA TER METROPOLITAN HOUSING CORPORA TlON (GMHC) WHEREAS, the Columbia Heights Economic Developmenl 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 Cotporation has provided housing preservation services since 2002. THEREFORE, BE IT RESOL VED, that the EDA allocates $50,000 for the Rehab Incentive Program and $35,000 for the Single-Family Home Deferred Loan Program to the Greater Metropolitan Housing Cotporation from Fund 408- EDA Housing Maintenance Funding. Resolution 2009-03. 2009 Consultinq Services AClreement with GMHC Motion by Diehm, second by Kelzenberg, to waive the reading of Resolution of 2009- 03, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Diehm, second by Kelzenberg, to Adopt Resolution 2009-03, Approving the 2009 Consultant Services Agreement with the Greater Metropolitan Housing Corporation (GMHC), and appropriating $15,000 from Fund 408-EDA Housing Maintenance for the same; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. EDA RESOLUTION NO. 2009-03 A RESOLUTION APPROVtNG THE 2009 CONSULTANT SERVICES AGREEMENT WITH THE GREATER METROPOLITAN HOUSING CORPORATION (GMHC) AND APPROPRIATING $15,000 FROM FUND 408 - EDA HOUSING MAINTENANCE FUND FOR THE SAME. WHEREAS, the Greater Metropolitan Housing Cotporation (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 Cotporation 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 RESOL VED, that the EDA approves the 2009 Consultant Services Agreement with the Greater Metropolitan Housing Cotporation and appropriates $15,000 from Fund 408 - EDA Housing Maintenance Fund for the same. Resolution 2009-05. Amendment to Contract for Private Redevelopment for 3805 2nd Street N.E. Cartney stated Resolution 2009-05 is approving an amendment to the Contract for Private Redevelopment with GMHC for the property at 3805 2nd Street. The EDA agreed to provide a gap financing amount of $86, 647 in the original agreement. GMHC is asking to increase that amount to $124,647. The second motion for this item is to amend the Contract for Private Redevelopment extending the commencement date to Economic Development Authority Meeting Minutes January 27, 2009 Page 4 of7 May 1,2010 and the completion date to December 31,2010. Staff is recommending denying the gap financing and extending the contract to 2010. Diehm asked what the implications would be if we terminate the agreement, because we think it isn't the time to build. Sheila stated she would have to look closer at the contract to see what that would be. Diehm stated there maybe more we want to talk about with GMHC. We partnered with them and need to be a responsible partner, but we don't know what the demand for single-family housing would be in two to four years and wondered if terminating the agreement would mean they get the property, is that the best result or not. Motion by Nawrocki, second by Diehm, to deny the Greater Metropolitan Housing Corporation's request to increase gap financing from $86,647 to $124,647 for the redevelopment of 3805 Second Street. All ayes. Motion Carried. Motion by Diehm, second by Kelzenberg, to waive the reading of Resolution 2009-05, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Diehm, second by Herringer, to Adopt Resolution 2009-05, Amendment to Contract for Private Redevelopment by and between the Columbia Heights Economic Development Authority, Columbia Heights, Minnesota and the Greater Metropolitan Housing Corporation, dated November 7,2007. All ayes. Motion Carried. EDA Resolution 2009-05 Amendment to "Contract for Private Redevelopment by and Between the Columbia Heights Economic Development Authority, Columbia Heights, Minnesota and Greater Metropolitan Housing Corporation" dated November 27, 2007 WHEREAS, on November 27, 2007 the City's Economic Development Authority (EDA) approved an agreement entitled, "Contract for Private Redevelopment by and Between Ihe Columbia Heights Economic Development Authority, Columbia Heights, Minnesota and Greater Metropolitan Housing Corporation (the Agreement), and WHERAS, this contract outlined the terms and conditions for redevelopment of property addressed as 3805 Second Street, and WHEREAS, the end result of the redevelopment is the construction and sale of two single family homes by Greater Metropolitan Housing Corporation, and WHEREAS, Section 4.3 (a) "Completion of Construction" requires a commencement date of May 1, 2008 and a construction completion date of December 31, 2008. WHEREAS, due to economic conditions causing declining sales prices the redevelopment project has been delayed. NOW THEREFORE BE IT RESOLVED, The Economic Development Authority hereby agrees to amend Section 4.3 (a) of the Agreement 10 change commencement date from May 1, 2008 to May 1, 2010 and complete construclion date from December 31,2010 to December 31,2009. Commercial Development Aqreement for 4707 Central Avenue Scott Clark stated on September 23, 2008 the EDA approved an agreement for a 52,000 sq ft commercial/office space redevelopment. The developer has come to staff saying that in this market it isn't feasible to build that large of a building. What they are proposing is eliminating the second floor above the Aldi's space, which reduces the space from 52,000 sq. ft to 35,000 sq. ft. Staff is asking for board direction as to: 1) Economic Development Authority Meeting Minutes Janumy 27, 2009 Page 5 of? would you still support tax increment financing with the reduction of the project size, and 2) agree to setting up a special meeting on February 9th to discuss and review the new plans with the developer. The key for the EDA is that the developer is up against the 5- year rule under the T1F laws. This means you have 5 years to establish obligation or meaning that you are going to issue a bond or as a pay as you go note or that the developer would have to incur expenses for that pay as you go note. Even if the EDA approves this, plans would have to go back to the Planning and Zoning Commission for plan approval. Diehm asked if in our current contract, we have a license and permit bond or letter of credit requirement, as she wants to make sure we have that security. Clark stated there is one. Peterson asked if we reduce the size of the parking ramp, would Met Council's grant still apply. Clark stated staff would go to Khoratty to obtain a letter of credit to present to Met Council to secure the grant funds. Motion by Diehm, second by Kelzenberg, to move to set a Special EDA meeting for Monday, February 9, 2009 at 6:00 p.m. in the City Hall, Conference Room 1. All ayes. Motion Carried. Approve Second Amendment to Amended and Restated Contract for Private Redevelopment with Schafer Richardson (Huset Park Development Corporation) Cartney stated at the time the EDA packet was ready to go out last Friday, we didn't have the information that they received tonight from our Attorney, Steve Bubul. So please disregard the Resolution. Cartney stated the EDA entered into an agreement with the Huset Park Development Corporation on October 25, 2004 for redevelopment of the Industrial Park. On August of 2007 both parties agreed to amend the agreement. At this time, staff has received a request from Schafer Richardson to amend the agreement to change the completion and commencement dates. Maureen Michalski from Schafer Richardson is here to answer any questions the board may have. Diehm asked what the current status of the senior housing was. Michalski stated they lost funding for it last year, but would be reapplying again this year. Nawrocki asked what the status was for Phase III. Michalski stated they are still in the process of building Phase II, the residential portion, which is behind due to the housing market. But certainly if someone would come to them and wanted to build a commercial building on the site they would be open to it. Diehm stated as long as we received this information last Friday and we need to have another meeting on February 9th, she didn't see any reason why they should approve this tonight. She had some questions and would like to meet with staff on them. Clark requested Diehm give him her specific questions to him prior to the February 9th meeting. Diehm agreed to do this. Motion by Diehm, second by Kelzenberg, to table this item until the Special Meeting of Economic Development Authority Meeting Minutes January 27, 2009 Page 6 of7 February 9, 2009. All ayes. Motion Carried. Diehm asked staff to also obtain an update from Schafer Richardson on the status of the units; how many have been sold, how many are vacant, etc. Resolution 2009-04. Decertification of TIF Districts P3/P4/S7 Clark stated the assistant finance director has requested staff bring this item to the board, as the TlF districts weren't Decertified when they were suppose to. So the City continues to receive checks. The board needs to make the Decertification final. Motion by Diehm, second by Kelzenberg, to waive the reading of Resolution 2009-04, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Diehm, second by Kelzenberg, to Adopt Resolution 2009-04, a Resolution Approving the Decertification of Tax Increment Financing Districts P3/P4/S7 of the City of Columbia Heights. All ayes. Motion Carried. CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOMENT AUTHORITY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. 2009-04 RESOLUTION APPROVING THE DECERTlFICA TION OF TAX INCREMENT FINANCING DISTRICT P31P41S7 OF THE CITY OF COLUMBIA HEIGHTS EDA WHEREAS, on May 27, 1997, Ihe City of Columbia Heights Economic Development Authority (the "EDA") created its Redevelopment Tax Increment Financing District No. P31P4 (Housing TIF #1) (the "District"), within the Central Business District Redevelopment Project (the "project'J. WHEREAS, on December 17, 2001, the EDA expanded the geographic boundaries of the district (the S7 geographic enlargement). WHEREAS, an Internal Fund Loan obligation, previously authorized, has been paid and the obligation is no longer outstanding, and WHEREAS, there are no parcels located in the District which currently have delinquent taxes under the duration limits; and WHEREAS, the Tax Increment Financing plan adopted on May 27, 1997 for Tax Increment Financing District No. P31P41S7 requires, pursuant to M.S. 469.176, Subd.1 b (a) (4) redevelopment districts, that the duration of the Tax Increment Financing District P31P41S7 Housing T1F #1 will be 25 years from the receipt by the EDA of the first tax increment, and WHEREAS, Ihe receipt of firsllax incremenl was July of 1998; and WHEREAS, December 31, 2023 is 25 years from the first receipl of incremenl, or the stalutorily required expiration date, and WHEREAS, the EDA desires to decertify the District prior to its statutO/ify required expiration date; and NOW THEREFORE, BE IT RESOL VED by the Economic Development Authority of the City ofCo/umbia Heights that the EDA's staff shall take such action as is necessary to infonn the County Auditorof Anoka County that the District is decertified and to no longer remit tax increment from the Distlict to the City. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 27th day of January 2009. Economic Development Authority Meeting Minutes January 27, 2009 Page 7 of? Resolution 2009-06, Amend Contract with GMHC for Additional Financial Assistance for 4141 Jefferson Street Carlney stated in 2007 the EDA entered into an agreement with GMHC for the property at 4141 Jefferson Street. GMHC is asking for a gap increase from the original amount approved of $65,050 to $88,850. Motion by Nawrocki second by Diehm to deny the request for additional gap funding. All ayes. Motion Carried. ADMINISTRATIVE REPORTS Clark stated the board requested information on the 5- year rule, which we have already discussed. Clark directed Cher Bakken to pass out the Columbia Heights Industrial Park Redevelopment History books that she was asked to make for them at a previous EDA meeting. ADJOURNMENT President, Peterson, adjourned the meeting at 9:55 p.m. Respectfully submitted, (1/-/ ~ Cheryl Bakken Community Development Secretary II/CAP ~ ! , H :\EDAminutes2009\ 1-27 -2009