HomeMy WebLinkAboutEDA MIN 04-28-09ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE REGULAR MEETING
Apri128, 2009
The meeting was called to order at 7:00 pm by President-Gary Peterson.
Members Present: Gary Peterson, Bruce Nawrocki, Marlaine Szurek, Gerry Herringer, Tammera Diehm,
Bobby Williams, and Bruce Kelzenberg.
Staff Present: VValt Fehst, Scott Clark, Sheila Cartney, and Shelley Hanson.
2. PLEDGE OF ALLEGIANCE- RECITED
3. CONSENT AGENDA
1. Approve the Minutes of March 24, 20Q9
Motian by Szurek, seconded by Nawrocki, to approve the Minutes of March 24, 2009 as
presented. All ayes. MOTION PASSED
2. Approve the Financiai Report and Payment of Bills for March per
Resolution 2009-11-TABLED UNTIL THE MAl' MEETING
Clark explained the repart is being re-formatted to delete accounts that are no longer valid which
will condense the size of the report and make it more understandable. Therefore, the reparts will.
be submitted at the next meeting for review.
BUSINESS ITEMS
4. Adopt Resolution 2009-12 Approving Contract Amendment for 37t" and Central Avenue
Sheila Cartney explained the private developer, Chris Little, is requesting an amendment ta the
Development Agreement for the 37t" and Central Avenue project that would grant him a one-year
exter~s;:,r~ ta v~~IT'i CGiiSiiiiG~ivii. iJiii~E ~X~~aiil~Ci iiia~ i1Y'iauii'i~ iE2'iaii~iS 11aS t3E~T'i a tiiifl~izil~ ~'iPC~~ESS
due to ihe econamic slaw down, and i1e doesn't want ia start canstructian until 60% of the lease
space is cammitted. He stated he would ratlier wait for tenants that would benefit bath the City
and the development itself.
Nawrocki stated that the City put a lot of money into buying up properties for a portion of this
development and it is not generating any tax dollars sitting empty. He said maybe the City should
look at marketing it to someone else. Clark explained that both the city's piece and the
developer's piece is too small to develop independently. The properties need ta be combined
together to make a marketable site.
Herringer clarified that Mr. Lit~te is paying taxes on the portion he owns, sa the overall inlpact o~
the tax revenue is minimal at best. Diehm stated she was wiliing to wait longer in order to get a
better mix of tenants. The overall consensus was ta grant the extension in hapes af abtaining the
types af businesses that were discussed when the project was first approved.
I`~1~tic~n by ~elzenbe~-g, secon~ed by ~Ierringer, to wapve the read~ng ofF~esaI~tic~a~ 2009-~2 there
bezng ample copies aVa~lable. 1~11 ayes. MOTION P'ASSED.
Motian by Kelzenberg, seconded by Szurek t~ adopt Resoluti~m 2009-~2 amending the
development cantract between 37th and Central LLC, and the EDA dated June 24, 2008, cilanging
commencement and completion dates. All Ayes. MOTION PASSED.
Economic Development Authority Minutes
Page 2
Aprii 28, 2009
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2009-12
RESOLUTION APPROVING A FIl2ST AMENDMENT TO CONTRACT FOR PRIVATE
REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT
AUTHORITY AND 37th AND CENTRAL LLC
BE IT RESOLVED By the Board of Commissioners ("Board"} of the Columbia Heights Ecanomic Development
Authority ("Authority") as follows:
Section 1. Recitals.
1.01. The Authorily and 37th and Central LLC (the "Redeveloper") entered into a Contract for Private
Redevelopment dated 3une 24, 2008 (the "Contract"j, settii~g forth ~lie fenns aud conditions af redevelopmeni of certain
property withirl the Redevelopment Praject, generatly lacated west of Central Avenue at 37`~ Street.
1.02. The parties have detennined a need ta amend the Contraet to facilitate the leasing of the Mini~n~am
Improvements by granting an extension to the Redeveloper for the commencernent of construction to May 1, 2010 and
completion of constrUCtion to January 1, 2011.
1.03. The Board has reviewed a First Amendment to the Contract and finds that the execution thereof and
perfonnance of tl~e Authority's obligations thereunder are in fhe best interest of the City and its residents.
Section 2. Autharit~~proval; Further Proceedings.
2.01. The First Amendment to the Contract as presented to the Board is hereby in all respects approved, suhject to
modifications that do not alter the substance of the transaction and that are approved by the President and Executive
Director, provided that execution of the documents by such officials shall be conclusive evidence of approvai.
2.G2. Tne Presidenf anci Executive Directc~r are here'r~y authoriz~~i ta exec;ute ar~ 'aeilaIf of th~ ~iutrivrriiy th~ First
Amendment to the Contract and any documents referenced therein requiring execution by the Authority, a~1d to carry out,
on behalf of tl~e Authority its obligatians thereunder.
Approved by tlle Board af Cammissioners of the Columbia Heights Eeonomic Development Authority this 28th
day of April, 2004.
President
A TTGC~T•
rit it~ i.
Secretary
~. 'TIF-~~~tt~~~c~ S~t~ H~~si~g ~ista~i~~
Clark explaif~ed that if t~ie ~oard decides to create a Scatteped ~ite TIF l~istric~ to acquire and
demalish blighted pr~perties that are n~~v far sale within the foreelosure rnarket, financing needs
t~ be ~sta~lis~~~~ tc~ f~.zn~ tl~e p~rchases. I~~ ~u~nt or tc~ state that ~99~,02Q c~f u~s~bligated tax
increment revenue can be generated from the existing C8 TIF District that wauld include the fund
balanee plus inerement reeeipts in 2009 and 2010. This district will be de-certified in 2010.
Economic Development Authority Minutes
Page 3
Apri128, 2009
Based on this revenue ainount, it is proje~ted th~t l 5 to 18 hom~s could be purchas~d and
demolished. Eventuaily these lats would be resold which would recaver approximately 70% to
80% of the original acquisition price and the taY increment wauld provide enough revenue ta
return the original purchase and demolition costs.
Clark stated we ha~e recently purchased homes for between $19,900 and $39,900. These
properties used to have mortgages on them of $140,000. By purchasing and demolishing them
for future re-development, we will revitalize neighborhoods and encourage others to keep up their
properties if they see overall improvements being made in the neighbarhood. He suggested
working with several builders in the future to get a variety af hause styles, rather than limiting
ourselves to one, or to a particular non-profit.
Two steps would be required to make this passible. In order to release the existing C8 fund
balance a TIF district modification would be needed to allow pooling and a new Scattered Site
TIF District would need to be established to gain additionai revenue. The City can start
purchasing homes priar to the creation of the C8 modificatian as long as either an inter-fund loan
agreement is made between the City and the EDA, and that any home bought and demolished is
memorialized by resolution.
In addition to the C8 district fiuids, the A3/C7 district will be decertified this year with
approxiinately $110,000 of redistributed funds that will be returned to the City. The Board needs
to decide whether to also include these funds into the Scattered Site Program.
Clark reviewed the criteria that wauld be followed when purchasing homes for
u~TiC~'iaS~iC3EfTfO~iifGll. ~~E S~aicCi iilai aii iivili~S f~Ia~ ~viilCi v~ rcllvi%a~Eu ~%Jtiil~u u~ fvivJai'uECi GII iv
t~noka County for consideration as part of the NSI~ program.
Nawrocki expressed his opposition to creating such a district and using the money from the ~8 ar
A3/C7 clistricts in this capacity. He felt the taxpayers would be negatively impacted.
Matian by Szurek, seconded by Williams to direct staff to implement all necessary processes to
create a Scattered Site Hausing District including the use of all remaining TIF Distriet C8 fiinds
(fund balance and revenue derived until the end of the District in 2010) as a revenue saurce and
the immediate acquisition of properties per the policies as stated in the repart dated Apri124,
2009. Kelzenberg, Diehm, Szurek, Herringer, Wiliiams, Peterson-Aye; Nawrocki-Nay
MO~'ION FA~SED.
The Board will hold off making a decisian about the A3/C7 District fund balance far naw.
Econamic Development Authority Minutes
Page 4
Aprii 28, 2009
6. Adopt Resolution 2009-13, Approving Inter-Fund Loan ta Purchase 4502 Washington St.
Staff had the opportunity to purchase 4502 Washington Street as part of the Scattered Site TIF
District Pragram that is being cansidered by the Board ta purchase and demolish sub-standard
properties that becoine available in the foreclosure process. The purchase price af the property is
$35,000, plus closin~ costs. Since the Scattered Site TIF District is not yet established, the City's
Capital Impravement Fund (420) would be the up front source of funding for the purchase of this
property. The inter-fund loan would grant the EDA the ability to repay the City, at a future tiine
with tax increment funds, for the purchase. The inter-fund laan is necessary to qualify this
purchase as a future tax inerement obligation of the new district if appraved by both the EDA and
the City Council.
Nawrocki expressed his opposition to this since it is carnmitting C8 funds to reimburse the City's
Capital Improvement Fund for the purchase.
Motion by Szurek, seconded by Williams to waive the reading of Resolution 2009-13, there being
ample copies available to the public. All ayes. MOTION PASSED.
Motion by Szurek, seconded by Williams to Adopt Resolution 2009-13, a Resolution Approving
the tenns of Inter-fund Loan in connection with a future Scattered Site TIP District to purchase
4502 Washington Street.
Kelzenberg, Diehm, Sz~zrek, Herringer, Williams, Peterson-Aye; NaLVracki-Nay MQTION
PASSED.
~~LTiTlloo~i~~i ~i-IEIGI~'Y'S EC~l°~Oli~II~ ~EVEL~Pli'IENT AiT3'~tlfii'ci'i'ir'
Resolutiau 2409-13
S~LU'I'It~li~ PR~ G I) S~ECIF~'I1~TG
TERMS OF INTER-FUND LOAN FOR ACQUISITION OF 4502 WASHINGTON ST. NE
RECITALS
A. The City of Columbia Heights. ("City") and its Econamic Development Autl~ority ("Authority") have
undertaken a progra~n to promofe the development and redevelopment of land which is underutilized within d1e City, and
in this connection the Authority administers the Redevelopment Project No. 1("Projeef'} pursuant to Minnesota Statutes,
Sections 469.001 to 469.047 and Sections 469.090 to 469.1081 (the "Act").
B. Piusuant to the Act, the Authority is autllorized to aequire real property far development and
redevelopment by private enterprise or public use.
C. ~'he Authorit~ proposes to acquire eertain property in the Project loca~~d at 4502 Washingtol~ St. NE (tlie
"Prc~perty).'~
I3. The Autharity and City may estabPislr a scattered-site tax il7cretnent finai~cing district ("TI~' District"}
c~~der i~/~~nr,escs~a ~tatu~es, ~ect~or~s 469.174 tcs 464.fl76 (the "`I'I~ Aet"} that pne~e~de~ the I'repetfiy in arder tQ f~ci~i~ate
development of that properry; ar tile Authority and City may develop the property for various public uses.
Economic Development Authority Minutes
Page 5
Apri128, 2009
~. U1~der Section 469.178, Subdivision 7 of the TIF Act, the City is autharized to advance or loan money from
any fwid from which such advances may be legally made in order to finance expenditures that are eligible to be paid
with tax iilcrements wlder the TIF Act.
F. The City has detennined that it is in the best interests of T11e City to loan funds to the EDA in order to
acquire the Property, which loan may be reapaid from t~ increments ar other sources, all as further described in this
resolution.
G. By a resolution approved April 27, 2009 (the "Loan Resolution"), the City Council authorized a loan from
the City to the Authority n1 the maximum principai amoui~t of $35,000 plus actual closing costs on acquisition of the
Property and the actual cost of demolition (the "Loan"}.
N4W, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic
De~~elopmez7t Authority as follows:
1. The Authority accepts and approves the Laan from the City ta the Authority as described in the Loan
Resolution, and approves a11 terms of the Loan Resolution.
2. The Board authorizes and directs staff to take all actions and execute any collateral documents necessary to
~~r~y ou± the intent of this resol~tia~~.
Approved by the Board of Cammissioners of the Columbia Heights EconoYnic Development Authority this
28`~' day of April, 2009.
President
FiT~,ES'i':
Secretary
6a. ~dopt Resolution 2009-15, Approving Inter-fund Loan ta Purchase 4108 7t" St.
Staff had the opportunity to purchase 4108 7th Street as part of the Scattered Site TIF District
Program that is being considered by the Board to purchase and demolish sub-standard properties
that become available in the toreclosure process. The purchase price at the property is $19,90Q,
plus closing costs. Since the Scattered Site TIF District is not yet established, the City's Capital
Improvement Fund (420} wauld be the up front sauree of fundil~g far the purchase af this
property. The inter-fui~d loan wauld grant t11e EDA the ability ta repay the City, at a future time
with tax increment funds, for the purchase. The inter-fund loan is necessary to qualify this
purchase as a future tax increment obligation of the new district if appraved by both the EDA and
the City ~s~tancil.
Nawracki expressed his oppositian ta this since it is committing C8 funds to reim6~rse the City's
Capital Impr~v~rr~ent ~ut~d far the ~urchase.
Motion by Diehm, secanded hy Kel~enberg to waive the reading of Resolution 2009-15, there
being ample copies available to the pubIic. All ayes. MOTION PASSED.
Economic Development Authority Minutes
Page 6
April 28, 2009
Mofron by Diehm, seconded by Kelzenberg to Adopt Resolution 2009-15, a Resolution
Approving the terms of Inter-fund Loan in connection with a future Scattered Site TIF District to
purchase 4108 7`~' St.
Kelzenberg, Diehm, Szurek, Herringer, Williams, Peterson-Aye; Nawrocki-Nay MOTION
PASSED
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION 2009-15
RESOLUTION APPROVING AND SPECIFYING
TERMS OF INTER-FUND LOAN FOR ACQUISITION OF 4108 7th ST. NE
RECITALS
A. The City of Columbia Heights. ("Ciry") and its Ecanomic Develapmerlt Authority ("Authority"} have
,µn~Q1-r,M,k~;~ ~~~Qb ~,,, t~ pr~,~,QtP t~P ~~~Pi~Y,~,P,~t ~rl rer~evelopm~nt af land whi~l~ is underutilized within the City, and
in this connection the Authority adrnillisters the Redevelopment Project No. 1("Prajeet") pursuant to Mii~nesota Statutes,
Sections 469.001 to 469.047 and Sectians 469.090 to 469.1081 (the "Act").
B. Pursuant to the Act, the Autl~ority is authorized to acquire real property for development and
redevelopment by private enterprise or public use.
C. The Authority proposes to acquire certain property in the Project Iocated at 4I08 7th St. NE (the
"Property),"
D. The Authorily and City may establish a scattered-site t~ incremeut finaneing district ("TIF District")
under Minnesota Statutes, Sections 469.174 to 469.176 (the "TIF Act") that includes the Property in order to facilitate
development of that property; or the Authority and City may develop the property for various public uses.
E. Under Section 469.178, Subdivision 7 af the TIF Act, tl~e City is authorized to advance or loan money from
ail"Y' iLiTiCi ifCrii2 Wi1iC~'i SuCii uCiJ^at'iC~°S M"u'~/ v~ ~i.°,~.:.~~y' IM2f~°, ,:2 .^,.G~:~ ~^ ~;.'.3:;C~ n.,X't~,Pn~t~~..l:'PS t~22t ~?'C'. PL~bl~J~P tC ~J? r~u?~
u~itl~ tax incremer~ts und~r th~ TIF Act.
F. The City has detennined that it is ir~ the best interests of the City ta laan funds ta the E.DA in order to
acquire the Property, which loan may be reapaid from tax increments or otiler sources, all as further described in this
resolution.
G. By a resolution ap~raved April 27, 2009 (the "Loan Resolution"}, the City Council authorized a Ioai7 froin
the City to the Authority in the maximum principal amount of $19,900 plus actual closing costs on acquisition of the
Property and the actual cost of deinolition (the "Loan").
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic
I~evetapmer~t Authority as fo2lows;
1. i he Authority accepts and approves the I,aan irom the Cify to the Autha~ity as d~scrib~d ii~ ~he Loan
Resalutiol~, and appraves a1t terms af the Loan Kesolution.
2. The Baard authorizes and directs stafFto take all actions and execute any collateral doeuments neeessary ta
carry out the intent of thps resolution.
Appraved by the Board of Comrr~issioners of the Colu~~lbia H~ights Ecor~omic T~evela~ment Authori~y ~~is
28"' day of ApriP, 2009.
Fresident, Gary Peterson
ATTEST:
Secretary, Shelley Haa~son
Economic Development Authority Minutes
Page 7
April 28, 2009
7. Make Heights Your Home-Pilot Pragram Approval
Cartney reviewed the down payment assistance program for the purchase of foreclosed homes that
are purchased using a 203K loan (which guarantees rehabilitation far that praperty). The funding for
this program will be from the 2009 Fiscal Year Anoka County Levy. Staff plans to administer the
pragram and 2009 will be the test year to see if this program can be a success far the City. She
explained that if GMHC administers the program, there would be a$500 per loan transaction charge.
City staff will charge an administrative fee of $250 per transaction out of the Anoka County Levy
Funds.
The Loan provides zero percent interest loan of 3.5% of the acquisition cost (purchase price plus
rehab costs) up to $6,000 to be used for down payment assistance with an FHA 203K
Purchase/Rehab Loan. Cartney re~~iewed the terms of the program aild reminded inembers that this
program is far properties that will be owner occupied. She stated she has had several caiis from
realtors asking if we had a program in place that would provide this type of incentive/ assistance.
Herringer wauld like to see the language for Term #6 clarified regarding repayment of the loan for a
borrower living at the property less than 10 years.
Staff is counting on using $180,000 of the Anoka County Levy monies for this Pilot Pragram.
Nawrocki thought the $180,000 should be used to purchase the sub-standard hames so the TIF
monies would not have to be used.
Clark explained this program is an additionai program aimed at different properties than the
"pzx~hase ~ c~~mc~lish" prc~gr~rn~ T~is prc~gram is ~im~d at hom~s that c~n be renovat~d and.
encourages owners to live in the property for at least ld years to help stabilize neighb~rhoods.
Motion by Diehin, seconded by ~zurek, to approve Make Heights You~ Hojne dawn payment
assistance program as presented in this staff report and direct staff to enter into necessary agreelnents
with Anoka County for use of the 2009 Fiscal Year County HRA Levy Funds.
Kelzenberg, Diehin, Szurek, Herringer, Williams, Peterson-Aye; Nawrocki-Nay MOTION
PASSED
~. tid~~ii Res~iuti~i~ 20CS-i~+, tip~,r~oving T~~adifi~a~ie,~i te, ihc i I~ Pta~ ioY ~~iar~~{^~~t~°~~ ~v~n~~
TIF District
~lark tc~id me~lb~ers t1~~i in c,ide-r tu nlodiiy the Kmar`J~~ntral Av~nu~ Tax ~r~rement Fii~ancing
Distriet the EDA must approve a Resolutian and then a public hearing must be held and the City
Cauncil would also need to pass a similar Resolutian. The modified plan would not add ~~ew
increment to the plan. It is I~at amending the budget of tlle district, but rather, a geagraphical
atnendment that is needed to al~av~ f~ture expendit~r~s in the ~heffield r~eighborhacsd. The key
element is the use of unobligated tax inereme~t from the original district as a revenue source far
red~v~~ap~n~n~ i~ the Herita~~ ~Ieights/Sheffaeld nei~hbarhaad. `I'l~e number af homes inciuded i~
the area is SS p~arcels. Clark statec~ by expanding the district, the hape is to [~uy up some oft~e
praperties and redevelop them with single fa~nily homes to further re-vitalize the area, which could
facilitate the remaining development of the KMart site.
Economic Development Autllority Minutes
Page 8
Apri128, 2009
The Plan acknowledges the City n7ay be a beneficiarv of a State law change that would extend the
"five-year rule" to a"ten-year rule". The net effect is that the 5-year rule would only allow the City
to use unobligated t~ increment from the existing Phase 1 condo project (assuming that a bond,
which is in process befare the City Council, is in place by Tuly 23, 2009) in the new geograpl~ic area
for redevelopment purposes. The 10-year rule would allaw future unobligated tax increment review
(primarily from condo phase II and phase III) from the original project to be used in the new area,
again for redevelapment purposes. The City/EDA anticipates the sale of taxable GO tax increment
bond in the amount of $930,000 to be sold and available by early summer of this year.
Motion by Szurek, seconded by Diehm to waive the reading of Resolution 2009-14 there being ample
copies available. All ayes. MOTION PASSED.
Motion hy Szurek, seconded by Diehm to Adopt Resolution 2009-14, a Resolution Adopting a
Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD
Redevelopment Project and a Modification to the Tax Increment Financing Plan for the
Kmart/Central Avenue Tax Increment Financing District.
Kelzenberg, Dielun, Szurek, Herringer, VVilliams, Peterson-Aye; Nawrocki-Nay MOTION
PASSED
COLUMBIA I~~IGH'i'S ECONONIIC DEVELOPlYIEN~' r~TJ'T~IOR~TY
CITY OF COLUMBIA HEIGHTS
COUNTY OF ANOKA
STATE OF MINNESOTA
RESOLUTION NO. 2009-14
RE~~I.~JTI~~'.T t~lJ1JP111\TG ~, rdIOI;~+IC.~'~IOidT ~'~3 THE ~0~.'l:TT~~'Vl~t CEi`T'I'R~iY~
BUSINESS DISTRICT (CBD) REVITALIZATION PLAN FOR THE CBD
REDE~ELQPli'IEN'T PROJECT AND A MODIFI~ATION TO THE 'gAX INCl~MENT
FINANCIN+G PLAN g'OR THE K-MART/CENTRAL AVENUE TAX INCREMEI~TT
FINANCING DI5TRICTm
WHEREAS, it has been proposed by the Board of Commissioners ("Board") of the Columbia Heights
Ecoi~omic Development Authority ("EDA"} and the City of Columbia Heights ("City") that the EDA adopt a
Modification to the Dow~ztown CBD Revitalization Plan for the CBD Redevelopmeilt Project (the "Revitalization Plan
Mnrllf!~?tlOt2~~~ ~uZ?~ ~ M~JG~lfratir`}n tC t~a Ta~r j?~~rr 1T2?l~~ ~?12~u11Cil~b P11?2 ~~~2P n~~~ p~3t? ~4G~2f1C3~t~;;~~~ ~~r t~~ K-
Mart/Central Ave~lue Tax Increineizt Finai~eii~g Dist~-ict ("TIF District"} thereil~ (the Revitalizatial7 Plan Modifeatlon
and the TIF Plan iv~odificatian are referred to colleetively herei~i as the "Modifications"}, all pursuar~t to and in
conformity with applicable law, includi~ig Minnesota Statutes, Sections 469.090 to 469.1082, and Sections 469.174 to
469.1799, inclusive, as amended (the "Act'"), all as reflected in t]~e Mc~dificatio~~s and presented for the i3oard's
coilsideration; a~id
W~-IEIZEAS, the ~~A has inuPstigated th~ facts reiatia~g tc~ the ?lilodi~ca*i~t~s a~id I~as caused th~ Mc~difcaficns
tca ~e preparPd, a~t~
Economic Development Authority Minutes
Page 9
Apri128, 2009
WHEREAS, the EDA has perfonned all ac~ions required by law to be performed prior to the ado~tion of the
Modifications. The EDA has also requested the City Planiling Commission to provide for review of and written
comment on Modifications and that the City Council schedule a public hearing on the Modifications upon published
notice as required by taw.
NOW, THEREFORE, BE IT RESOLVED by the Board as fallows:
1. T1te EDA hel°el~y finds that th~ I'vlodi~catiorZS, are intended and, in the judgrrrent crf t17is Boat~d, the effeet of
such actions will be, to provide an impetus for development in the public purposes and accomplish certain objectives
as specified in the Modifications, which are hereby ineorporated herein.
2. The EDA hereby finds that parcels listed in Appendix C of the TIF Plan Modificatio~l should be included
in the TIF District, and adjacent streets and right-of way property; thereby changing the geographic shape of the TIF
District.
~. TI1e EL~7A hereby finds that the area being added to the l Ir l~istrict as part of the praposed IViodifications
meets tl~e requireme~~ts for a"renewal and renovatioil district" under Minnesota Statutes, Sectioi~ 469.174, Subd. 10a,
and ~nds that the adoption of the proposed Modifications conforms in all respects to ~he requiremeaats of the Act and
will help fulfill a need to develop an area of the State of Minnesota which is already built up and that the adoption of
the proposed Modifications will help provide public improvements, revitalize an area characterized by blight and
occupied by substar~dard buildings, and ex~and the tax base af the City, and thereby serves a public putpose.
4. T11e EDA hereby reaffinns tl~e original findings for the TIF District, established as a"renewal and
renova~tion district".
5. The EDA further finds that the Modifica~tioils will afford maximum opportnnity, consistent with the soui~d
needs for the City as a whole, for the development or redevelopment of the CBD Redevelopment Project by private
enterprise in that the intent is to provide oiily that public assistance necessary to make the private developments
financially feasible.
5. T ~e ~~undar;es of tt;e ~B~ Rede~%el~~,ment Fr~je~t are r~ot being ~x~,a~deU.
7. The reasons and facts supporting the findings in this resolution are described in the TIF P1ar~ Modificatian
and in t~he exhibit attached to the City resalution approvin~ the Modifications, on file in City Hall.
8. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the
Modifications, as presented to the EDA on this date, are hereby approved, established and adopted aud shall be placed
on file in the of-fiee of the Community Development Director.
9. ? 1p~n a~~r~E~al ~f tl:e Nt~~ifiea±:oi~s by the ~'i~,~ ro~.~neil, ±l~e s±aff t?:e FL~A's adt~iscrs ar.d legai ~o~:~:se?
are autharized ar~d directed to proceed with the implementation af the Madifications and for this purpose to negotiate,
draft, ~i-eparc and present to this Board for its consideration all further plans, resolutions, documents a~id ca~ztracts
necessary for this purpose. Approval af the Modificatians does not constitute approval of any project or a
Development Agreement wit11 any developer.
1Q. Upon approval af the Modificatious by the City Council, the Comn~unity Developtneilt Directoa- is
authc~riz~d a~d darected to foa~ward a copy c~f tlte Modificati~a~s ta the ?l~innes€~ta ~ep~artcnen~ of Iie~~et~ue a~~d the
4f#ice ofthe State AuditQr ~ursu~~,t to 1~Iana~esota Sta~ztes 469.175, S~b~. 4~.
l l. U~aa~ ~p~arovai af ~he Modi~catiQns ~~ the Cit~y~ Counvdl, tla~ ~atnrnunity Dcleloprsaent Directaa is
a~ztllarizec! and directed ~o farward a ca~y of the Ivloclificatians to the Anoka Cou~7ty Auditc~r and req~aest that the
Auditar certify the original tax capacity of the parcels bei~~g added to the TIF District, as described in the TIF Plan
Modificatioii, all in aecordance with Miiznesata Statutes 469.177_
Economic Development Authority Minutes
Page 10
April 28, 2009
Approved by the Board of Commissioners of the Columbia Heights Economic Development Autl~ority this 28t'
day oi Apri1, 2~Uy.
ATTEST:
Secretary
EI3A ~'t°esid~nt
9. Heights Housing Protection Program Discussian (property inspection)
Clark explained that the Heights Housing Protection Program is basically a re-named RIBS program
that was considered last year, with a few modifications. Due to the vast number of foreclosures in the
city (363 active foreciosuresl517 in the last ~8 monthsj, coupled with conditions of the properties that
are being evidenced from staff, it is recommended the Council consider implcmenting this type of
program to help stabilize our housing and IZeighborhoods. The name change is intended to reflect the
purpose of the inspection program, which is to ensure houses meet minimum standards (which
protect the new homeowner), but also to protect neighborhoods. Clark stated it is hoped that this will
help neighborhoods gain back confidence that would result in owners re-investing in their properties.
He said it may be advantageous to try the prograin with a 3 year sunset clause and to re-evaluate it
after the market conditions improve.
Clark su~gested that members of the Counci~, EDA, and Planning &_7,oning Coin~nissions tour some
vacant properties to gain an understanding of haw the program would work and the types of repairs
t~'l~t ~~~Ll~~ ~JP n~p~~~l. Tj~ic wdi1~~ ~2~~p ~'~~~?2~1~ 3I2cwPr z>>PCtir~nc ~l~at i2?~;~ ~~'~S~ ~~~~'inb thP j~~~jli~
Hearings that ~vill be he1d.
Ii~elr~bers had questians regarding the inspection cilecklist aild tl~aught same c~f the iterns ~vere
ambiguous. Clark explained the checklist used is one that has been used for many years for rental
licensing that is based oia the Property Maintena.nce Code adopted by the City. Diehm asked that we
obtain copies of the checklist from Minneapolis and St. Paul. Cartney said she would get the copies,
but explained they have a truth and housing inspection report and that corrections are not mandatory
for these two cities.
Nawracki wants ir~ormational rneetings held to explain the program for the residents of the city, ilot
just the realtors this time. He hopes tl~at would help clarify inc~i~sisteneies and incorr~ct i~~fc~rmation
~hat caused the prograrn's faiiure to pass ias~ yeaY.
Members reviewed the Schedule/Pracess that was enclosed in the agenda packets. Several
suggestians were made:
*Na~roeki wa~t~~ to s~~ t~1~ ls~ ~r~d 2"a r~adings r~mov~d frazn t1~e sched~l~ as this ~ives tl-~e
impression it is already "decided".
*Szurek sug~ested i~vi~in~ Jia~ Kord~ak o~~ the t~~r s~ 1~a~ ca~ se~ firs~ hand the ecnditi~n of sc~m~ ~f
the hausing stc~ck tryin~ to be re-sold.
*Diehm stated the tour witl have to be posted as an officia~ nleeting with the addresses of each
property listed.
Economic Development Authority Minutes
Page 11
Apri128, 2009
Motion by Szurek, secanded by Williams to cantinue exploring "Heights Housing Protection
Prograin" and establishing May 27, 2009 for a tour of various properties with the regular EDA
meeting to follow afterwards. All Ayes. MOTION PASSED.
10. Administrative Report
a. TIF Extiension Update
Clark explained the Senate has one version on the floor that wauld be of no help to Columbia
Heights. The House has one version that would be of minimal he1p. There were a large
number of cities that were askillg for the same thing. It is now up to the Legislature to make
their decision. It could have an affect on the use of monies from Phase 2& 3 of the I~nart
site.
b. 47th and Central Update
RJM has been assisting the developer and they are trying to bring the projeet tagether. Clark
explained they need to get at least two major tenants to commit to the project for it to begin.
Buffalo Wild Wings may be interested, bL2t Aldi's is looking at other sites since ~he pr~ject
has stalled for so long. He thought something will be decided one way or the other within the
next two weeks. If the project is not constructed and the ramp not built by year end, the Met
Council will pull the grant money and most likely use it for their transportation budget
sh~rtfall.
~. r~~~e~s~:a~l ~" P~;:a~ fc~ t~e R~:r~~~ u~~~ ~~t~
Clark reported that we have contracted to wark with Pro Source for a Cc~nceptual RAP P1an to
be dane. This includes taking the Phase 2 information ta the IvIPCA and getting an agreement
from them on what remediation would be required before developing the site. This would
allow the City to ~nove farward wiYh limited amendments or modifications once the market
improves. The cost to have Pro Source do this RAP Plan is approximately $4000. Staff
needs to check on laizguage concerning $50,000 commitment fram previous owner for soil
carrection work.
d. I-~us~~ P~rk T'aw~h~ e A~se~ciatie~~ D~ci~ratic~~s
As part of the ori~inai development agreelnent a 5% cap of rental units allawed was agreed to.
When tl~e Associatian Declaratiolls were established they had language that limited the right
of ~~ owner to r~nt a unit ta a c~n~ time rental. Onc? a r~nter ~a~ved c~utg the unit ~~u1dn't 1~~
rented aba~a~a. ~his `,uas ~~t s~m~tl~ing the Caty r~quirid, it was ~~e =ava;~ ~~eir deelar~~ican was
drawn up. They want to amel~d their docuznents to r~move that stipulat~an, to still keep the
5% lirrzit, at~d to ~dd a prc~visian that a u~it ~~~~st be liv~d in fc~r tw~ y~ars before the ~wa1~r
could decide to re~zt it out. The EDA ec~nsensus was that the aforem~n~tio~ed provisions met
the ariginal intent af the Agreement. Therefore, staff wili implement any necessary
modificatians administratively.
Economic Development Authority Minutes
Page 12
Apri128, 2009
e. Anoka Ca~~a~ty I.evy
Staff wi11 prepare a letter to open a discussion with Anoka County to establish how the Levy
money will be disbursed and what affect it will ha~e on the amount we receive. We are in a
five year agreement with Anoka County and it is possible the allahnent af monies may be
changed. Staff needs to get a comnlitment from Anoka County on these funds.
The meeting was adjourned at 9:00 pm.
Respectfully submitted,
-^ f 5~ ,~.~ ~,~ \~
''*-.._~.~ L+" , ~ ' S
Shelley Hanson `~
Secretary