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HomeMy WebLinkAboutEDA MIN 02-24-09ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES February 24, 2009 CALL TO ORDER/ROLL CALL The meeting was called to order at 7:01 p.m. Present: Gary L. Peterson, Bobby Williams, Bruce Nawrocki, Tammera Diehm, Marlaine Szurek, Gerry Herringer and Bruce Kelzenberg Staff Present: Walter Fehst, Scott Clark, Sheila Cartney, Cher Bakken PLEDGE OF ALLEGIANCE CONSENT AGENDA Approve Minutes of January 28t" and February 9, 2009 meetings and the Financial Report and Payment of Bills for the month of January 2009 on Resolution 2009-09. MOTION by Szurek, second by Williams, to approve the consent agenda items as listed. All ayes. Motion Carried. EDA RESOLUTION 2009-09 RESOLUTION OF THE COLUMB/A HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROV/NG THE FINANCIAL STATEMENT FOR JANUARY 2009 AND PAYMENT OF BILLS FOR THE MONTH OF JANUARY 2009. 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 January 2009 and the list of bills for the month of January 2009 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. BUSINESS ITEMS Housinq Proqram Discussion Clark stated this item is for consideration of establishing a new housing program directed towards foreclosure properties. Questions: 1) does the City want to become involved in some kind of home assistance program that uses City funds; 2) what funds Economic Development Authority Meeting Minutes February 24, 2009 Page 2 of 4 are available to use for a housing foreclosure program; 3) what would be the goa/s and/or objectives of an assistance program; 4) what type of program could be developed and 5) what are the next steps. Peterson stated he received a call from resident, Andy Duncan who said his concern was that people can afford to buy the home, but when they get into it they can't afford to fix them up. Some type of /oan to help homeowners that come into this situation is needed. Szurek asked what the current number of forec/osures was. Clark stated it was approximately 480, between 2007 and 2008. Diehm stated when we decided to go with the Anoka County plan we had a PowerPoint program that declared a certain amount of dollars on this type of program. Fehst stated before Bob Streetar, former Community Development Director left we adopted a housing program. Clark stated the dollars in that fund were totally separate from these funds. The dollars were going to be spent over 10 years, where as this money has a wide range of uses. Board members expressed the following concerns: 1) people are going to buy the foreclosure homes and turn them into rental property; 2) spreading our funding too thin; 3) wanted more details before making a decision; 4) did agree with the Minneapolis program with no income restrictions; 5) some members did not like the forgiving of the loan as described in other City programs; 6) liked what Ramsey did by putting a $20, 000 mortgage on it, so they couldn't sell the home without paying it off; 7) what would be the loan cap amount; 8) how would income restrictions affect low and moderate income households, and 9) wanted low or no interest /oans. Peterson directed staff to pursue the program options and bring more details to the next meeting. TIF Expansion Clark stated the existing K-Mart/Grand Central Commons TIF district is proposed to expand and include the Sheffield neighborhood. As part of the process the City Council must hold a Public Hearing on the proposed extension and the EDA must request the City Council to schedule and hold the Public Hearing. Nawrocki asked what are the boundaries of the districts we are proposing to cover. Cartney said it is 47t`' to 46t`' Avenues and Central to Fillmore. Fehst suggested if anyone has any questions, they could meet with Clark tomorrow and that if we don't act on it we would /oose a million dollars. Motion by Kelzenberg, second by Williams, to request that at the March 9,2009 City Council meeting the City Council call for a Public Hearing for April 13, 2009 at approximately 7:00 pm for the K-Mart/Grand Central Commons TIF Expansion. All ayes. Motion Carried. Peterson stated we have been very fortunate that Carolyn Laine and Satveer Economic Development Authority Meeting Minutes February 24, 2009 Page 3 of 4 Chaudhary have been cooperating with us. ADMINISTRATIVE REPORT Scott stated the City should receive $170,000 CDBG fund award for the Sheffield area and thanked Sheila for her hard work on the application. Scott stated staff has been working with Met Council on the $974, 000 grant for the parking ramp. They would like to reduce the amount due to downsizing the ramp. The worst-case scenario would be they reduce the grant funding by 20%. The City Manager and Mayor have been attending the meetings with staff. Khoyratty is working on leasing the project and has Aldi's already locked in. The new site plans go before the Planning & Zoning Commission next Tuesday night for approval. Nawrocki asked what the status was for 37t`' & Central. Sheila stated Chris Little, (37rn & Central LLC) was still working with an auto parts store and Dunkin Donuts. Nawrocki asked Clark to tell him about the bill that staff was trying to get legislature to pass that would extend the TIF district. Clark stated that bill was an item that staff brought to the board a couple of months ago. The bill was for a Five-Year Rule extension of the Kmart/Sheffield TIF district. The rules are that within the first five years a district is certified, you have to either incur all of your expenses within that district or obligate a Pay-As-You-Go Note as a bond. Once the five years have passed, you can't use the increment or make new obligations. Representative Carolyn Laine has said that she wanted to make sure there was a consensus of the board on this. The bill has been introduced to the Legislature. Staff inet with Senator Chadhaury and he has a/so introduced the bill. Nawrocki said he did not remember getting the information on the Five-Year Rule. Clark stated he would provide the information to him again. Peterson announced that Community Development Secretary, Cher Bakken's last day with the City is this Friday due to the drastic cuts in the cities budget she is being laid off. Cher has been here for nine years. The board thanked her for all of her work over the years and that she will definitely be missed. ADJOURNMENT President, Gary Peterson, adjourned the meeting at 8:01 p.m. Economic Development Authority Meeting Minutes February 24, 2009 Page 4 of 4 Respectfully submitted, Cheryl Bakken/Sheila Cartney Community Development Secretary/Assistant Community Development Director H:\EDAmin utes2009~2-24-2009