HomeMy WebLinkAboutEDA AGN 06-23-09AGENDA
COLUMBIA FiEiGHTS ECONOMIC DEVELOPMENT AUTHORITY
TUESDAY, June 23, 2009
7:00 p.m., City Hall, Conference Room
1. Call to Order/Roll Call
Gary L. Peterson, President Bobby Williams
Marlaine Szurek, Vice President Bruce Nawrocki
Bruce Kelzenberg, Secretary/Treasurer Gerry Herringer
Tammera Diehm
2. Pledge of Allegiance
CONSENT AGENDA
3. Approve Minutes of May 27, 2009
Approve financial report and payment of bills for May 2009, Res. 2009-19
Motions:
Move to Waive the Reading of Resolution 2009-19, there being an ample amount of
copies available to the public.
Move to Approve the Minutes and Resolution 2009-19, approving the Financial
Report and payment of bills for the month of May 2009.
BUSINESS ITEMS
4. BKV presentation - Grand Central Lofts
5. Resolution 2009-18 EDA pledge agreement for GO Bond Series 2009B
Motion: move to waive the reading of Resolution 2009-18, there being an ample
amount of copies available to the public.
Motion: Move to adopt Resolution 2009-18, Authorizing execution of a Tax Increment
Pledge Agreement with the City of Columbia Heights relating to $580,000 taxable
general obligation tax increment bonds
6. Administrative Report
a. 4147 ?t" Street house donation
b. Rental information per EDA request
c. Update on open houses
7. Other Business
The next regular EDA meeting will be Tuesday, July 28, 2009 at Parkview Villa.
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE REGULAR MEETING
May 27, 2009
The meeting was called to order at 6:00 pm by President-Gary Petersan.
Members Present: Gary Peterson, Bruce Nawrocki, Marlaine Szurek, Gerry Herringer, Tammera Diehrn,
Bobby Williams, and Bruce Kelzenberg.
Staff Present: Scott Clark, Sheila Cartney, Larry Pepin, and Shelley Hanson.
Others from Community: Carolyn Laine (House Representative) and Jim Kordiak (County Commissioner)
This was a joint meeting with meinbers of the Planning & Zoning Commission for the purpose of touring
various properties throughout the city that were used as exarnples for a possible Housing Protection
Inspection Program. Members were provided with a copy of the mock inspection report done on each home
so that they have a better understanding of what corrections may be required if the City chooses to
implement the Heights Housing Protection Program.
The homes toured iilcluded:
4553 5`h Street (Anoka County is purchasing this property with NSP funds)
4108 7`~' Street (The City purchased this property)
4502 Washington St (The City purchased this property)
4618 Polk Street (The City purchased this property)
At the end of the tour the meeting was re-convened in Conference Room 1 to continue with the Regular
meeting.
2. PLEDGE OF ALLEGIANCE- RECITED
3. CONSENT AGENDA
1. Approve the Minutes of Apri128, 2009-
Nawrocki questioned whether the letter was sent to Anoka County to open the discussion
regarding the Levy money and how it will be disbursed as referenced in the minutes. Clark
said that the letter has not been sent yet.
Nawrocki then questioned why the proposed schedule for the Heights Housing Protection
Program was not included in the minutes. Clark said it was because the schedule was
prepared to show a tentative timeline for the process if the Board decided to proceed. The
Board did not take formal action to proceed, therefore, the schedule was not approved in any
fashion. A new tentative schedule has been prepared for discussion at this meeting.
2. Approve the Financial Report and Payment of Bills for March and April per
Resolution 2009-16
Nawrocki questioned the various funds listed in the financial report. He wanted to know the
difference in the 201, 204, and 420 funds. Clark explained the 201 fund is the general
operating account for the Inspections/Community Development Departinents; the 204 fund is
a holding fund for the EDA/HRA levies, soine of which get transferred to the 201 fund; and
the 420 account is an account for capital expenses outside of the nonnal operating budget,
used for things like purchasing properties. Nawrocki also asked what the HRA-5 way split
was. Clark said he would have to check into that and report back at the next meeting.
~conoinic Development Authol-ity Miilutes
Page 2
May 27, 2009
Nawrocki then questioned some of the individual bills: $119 to Fidelity Services was for the
Cleaning Company. $700 for Tire Instruction and Rescue was the fee incurred to have tlle
Fire Department burn down one of the City owned properties in lieu of having it demolished
by a11 Independent company for a higher fee.
Ileningei questioned if "demol." meant demolition expenses as listed oll the financial report.
Clark told llim that was correct. He also aslted if the paymel~t to ProSource was for
environmental work. Clark confirnled that. And the payment to Huset Park Development Co
for $56,334.36 was questioned. Clark ex~lained that was a refund after expenses to the
Conlpany from an escrow that had been held in the original amount of $130,000.
Motion by Szurek, seconded by Williams, to approve the eonsent items as listed. All ayes.
MOTI~N PASSED
EDA RESOLUTION 2009-16
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
:~PPROVING THE FINANCIAL STATEMENT FOR MARCH AND APRIL 2009 AND PAYMENT OF
BILLS FOR THE MONTH OF MARCH AND APRIL 2009.
WHEREAS, fl~e Columbia Heights Economic Development Autl~ority (EDA) is required by Mi~v~esota Statutes
Section 469.096, Subd. 9, to prepai-e a detailed fina»cial statement which shows all receipts and disbursements, their
natu~-e, the ii~oney on hand, the ptu-poses to which the mo~ey o» hand is to be applied, the EDA's c~-edits and assets and
its outstanding liabilities; and
W~IEItEAS, said StatLrte also req«ires the F,DA to examine tl~e statement and treasurei-'s vouchers or bills and if
correct, to approve them by resoll~tion and enter t1~e resolution in its records; and
WHEREAS, tl~e fiilat~cial statement for the months of March and Apri12009 and tl~e list of bills for tl~e nzonths of
March and Apri12009 are attached l~ereto and made a part of tilis resolution; and
WHEREAS, tl~e EDA l~as examined the financial sta~tement and the list of bills a~Id finds them to be acceptable as to
both foi7n and accuracy.
NOW, TFIEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic
Developnle»t AuYhority that it l~as examii~ed tl~e attached fi»a~7cial state~r~ellts and list of bills, which are attached
hereto and made a part hereof, and t11ey are found to be correct, as to foi-~n and content; and
BE IT FURTHER RESOLVED the financial state~nents are acla~owledged 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 pei7nat~ent records of the
Columbia Heigl~ts Economic Development Authority.
Passed tllis 27th day of May , 2009.
MOTION BY: Szurek
SECONDED BY: Williams
AY~S: All ayes
Economic Development Authority Minutes
Page 3
May 27, 2009
BUSINESS ITEMS
4. DISCUSSION AND DIRECTION ON PROTECTIVE INSPECTIONS PROGRAM
Clark explained that the tour earlier this evening was to give Board members examples of inspection
report results of various homes if a Housing Inspection Program was approved for properties being
sold in Columbia Heights. He stated that City Officials and staff had no idea last year how bad things
would get with the foreclosure housing crisis, and what the impact would be on our neighborhoods.
He said even though several programs have been initiated, these programs won't help maintain our
entire housing stock. The condition of our houses affect our neighborhoods, which in turn, affect the
general condition of our city as a whole. The inspection examples provided this evening were to give
the members of the EDA Board, the City Council, and the Planning Commission a better
understanding if it is decided to proceed with this program.
Clark stated he knows that it is a difficult decision to make and that the Council will probably face
some opposition, but that a point of sale inspection could benefit the community. He said staff is
looking for direction on whether to proceed with Public Meetings regarding this matter. The
Inspection Program would be required prior to a property being sold and would require some level of
compliance for property maintenance. Clark said a lot of the sales taking place out there now are fire
sales that banks and mortgage companies are trying to simply remove their liabilities. These
properties are being turned over "as is" without any disclosures being made regarding the condition
of the property.
Eric Meyer from the North Metro Realtors Assoc. stated that he represents a large group of realtors
and that they are against this type of inspection program. He said the Point of Sale Inspection
Programs are a tool for the cities who have them, but make the process of selling a house more
difficult. He believes there are enough programs available now through the federal government, the
County, and the Cities thernselves; to help owner's purchase homes. He also stated that Columbia
Heights sales of foreclosed properties are higher than any other city around us. He thinks that our
sales will continue to rebound at a faster rate because of our location and the affordability of the
homes. Meyer went on to say that a high rate of rental property is advantageous to the city because
they bring in higher taxes.
Szurek strongly disagreed with him. The increase in the number of rental property brings other
problems with it because the residents tend to be transient and are not committed to being a part of
the community. These problems cause expenses to a City that far outweigh any additional tax
revenues.
Diehm agreed there are tools and funding available to us, but what tooi out there gives us access to
these homes? There are funds if people want to rehab a house, but what about those homes that are
not being maiiitained or repaired. She said that inany buyers will hire an independent inspector
before purchasing a hoine, but many do not. Many cannot afford to, or are not aware of tlungs they
should do before purchasing a home. She stated we have a large number of immigrants and other
vulnerable peo~le purchasing property here because it is affordable, and unless it is a rental property,
we have no right to ensure minimum standards are being rnet. She believes that as a policymaker it is
her responsibility to ensure that all owners purchasing property are not getting substandard housing
that rnay continue to further deteriorate. We need to protect the residents of this cominunity,
especially those that don't ha~e the means to protect themselves.
~conomic Development Authority Minutes
Page 4
May 2'7, 2009
Meyer stated he didn't thinlc the City should ha~e access to properties, no matter what the condition.
He believes the requirements already in place by Bat~lcs, Mortgage Companies, and private lenders
for inspectians prior to giving loans on property are sufficient. Diehm disagreec~with that statement.
She used all the houses that the group went through this evening as examples of substandard housing
that had mortgages on thein. She also pointed out that investors aild under funded buyers are finding
loopholes by pLUChasing these "affordable" properties on Contracts for Deed which eliminate the
need for any inspections. These properties usually don't get rehabbed because tlle ot~ners aren't
required to do sa, or can't afford to, in many cases.
Meyer said Columbia Heights properties are in a prime location. Dielvn agreed, but she pointed out
that if responsible owners are looking for praperty in aii i~u~er ring suburb, they would look in St.
Anthony, New Brighton, St. Louis Park, a1~d other cities where housing is in better condition.
Meyers lcept pointing out the high nuinber of foreclosures that have sold in Columbia Heights.
Diehm said she didn't think that sales in other cities wluch have Point of Sales I~lspection Progi•ams
have stopped. She wants staff to look islto the statistics oli that, and stated if the Council decides to
proceeds with this program, sl-ie hopes that tlle North Metro Realtors Association would support the
Council and not hilzder their decision. Meyer stated that the Realtors agree with the goals the City
Council has regarding the housing stock in the City, but that they disagree with the process on how to
achieve tl~ein.
Carolyn Laine, State Representative, agreed with Diehm that the tools available to help purchase a
~raperty or to re-hab it doesn't necessarily help tl~e City's situation. She believes the City actually
needs this type of ~rogran~. She hopes the City Council will focus on the lasger picture, dlat being
the overall health of the City. Laine thinks tl~e focus should be to inlprove the housing stock to
encourage ownership for people wha want to be part of our cominunity, not just tenants who move in
and out, and have no vested interest.
Clark said that if the Board recommends we move forward with this, he would follow a different
process tlian last year. He thinks there needs to be more dialogue to better explain the program. He
said he would schedule meetings w~ith the Realtors, bankers, and mortgage representatives in the area.
He would also schedule two Public I~ifonnation Hearings to explain the program and answer
questions. He said there was a lot of incorrect infonnation that was passed around last year that got a
sinall group of people very upset and vocal. He said he got calls from people that tliought the city
would start lalocking on doors and going ulto homes telling them to make certain repairs a~1d
upgrades to their homes, even if they were not selling. They misunderstood that an inspectian would
only be required before the sale of a 11o~ne. Szurelc affumed that she had similar ca11s.
Jeff Diehm, a resident of Columbia l~eights, said he thinks Mr. Meyer's opulions aren't necessaiily in
the best interest of tlie City, but ratl~er in the best interest, especially financially, of the realtors
themselves. Diehm said Mr. Meyer is advocating for any type of sale, and seems to be encouraging
propei-ties being purchased for rental, without any regard to what it does to a coirununity as a whole.
He believes, as a resident, that Colusnbia Heights has enough rental property. Wllile he is not
necessarily in favor of the City comu~g in and uzterferuzg with tl~e transaction of selling his home, he
is willing to allow it because he sees the broader picture. Because his home is in good repair, the
requirement of ai~ inspcction wouldn't actually affect him, so he feels no threat to allow such an
inspection. He doesn't necessarily like govermnent intruding on his rights, but reminded everyone
that we relinquish personal rights everyday for the betterment of society. He said the group last year
Economic Development Authority Minutes
Page 5
May 27, 2009
were concerned about their individual rights, and did not look beyond that to what was good for the
community they Iive in. He thought it was a somewhat selfish viewpoint. He pointed out that
whenever you put your horne on the market you lose your privacy & rights because all kinds of
people will view your property through the process.
Nawrocki said Ile wouldn't characterize everyone from last year's meeting as misinformed. A lot of
people were concerned that it was an invasion of their privacy. He does believe the City has the right
and responsibility to inspect rental property, and as a result, each City Council meeting has a number
of rental licenses seeking approval. He sees tlus as a City policy that is working. He has concerns
whether to initiate this type of program for sales of private homes. He felt that most people already
hire Independent Inspectors, and he has a hard time justifying the requirernent for more than one, and
that they have to pay the City for something they may have had done by someone else. He said that
Sellers and realtors are already responsible for filling out disclosures. If this isn't adequate than
maybe the State Legislature should step in and make the requirements for disclosures more strict and
implement stiffer penalties.
Cartney stated that disclosure statements aren't done for all homes on the market, especially since the
housing crisis started last year. Banks, mortgage companies, and private lenders who have foreclosed
on a property do not fill out disclosure forms. They sell the properties "as is". So again, it gets back
to sub standard properties are being sold to, sometimes, unsuspecting buyers, or those that cannot
afford to make improvements necessary to make the house livable.
Szurek stated she thought that a11 properties sold should go through a point of sale inspection for
safety issues at the very least. She used things like furnace and water heater operation, water leaks,
rnold, foundation and structural integrity as examples of items to be viewed.
Peterson said that if a private inspection is done, then maybe we could accept it for the purpose of
this program. It was pointed out that Private Housing Inspectors are not required to be licensed.
Donna Schmitt said that if 60% of the properties sold are rental (according to Eric Meyer), than there
are only 40% left that need to be addressed. She suggested making it a requireinent that anyone
getting funds from the Make Heights Your Home Program, needs to go through an inspection. Clark
responded that program is for buyers using a 203K mortgage, which is part of a federal program, and
that rehab is a requirement of that loan and the mechanisms for inspections are already in place.
Peterson sees that it comes down to two issues: 1) Invasion of Privacy and 2) Cost of Inspection
which may prompt an issue of cost of repairs.
Szurek thinks it will be an education process and we need to make them understand the larger picture.
Herringer said this is a tough decision to make. His political belief is to keep government out of his
personal affairs and his house, but he realizes it isn't inaking a decision about his house. He is half
comfortable about proceeding with this program for the safety issues raised earlier.
Peterson stated the Board needs to decide whether to help our neighborhoods and housing stock, or
not. He doesn't see it as such a threat. People are going to go through the house if it's put on the
rnarket anyways, You pretty much open your home to public inspection once it's listed.
Ecanomic Develapment Autilority Minutes
Page 6
May 27, 2009
Clark reminded members that it is the saine inspection we are cullently using for rental properties
and abandoned properties, and he hasn't received any ilegative comnlents fram owners abaut the ones
performed tl7us far. He said that if Sellers choose not to make corrections, that buyers may assume
tlle responsibility to fix by entering into an escrow agreement. ViThen asked if a property was already
subject to a dedicated escrow account for a 203K program, would we require another escrow to be
established. Clark respor~ded that the prior Ordinance would recognize the dedicated escrow account,
so a second one would nat be required.
Nawrocki stated he thought the general condition of housing has gotte~ better every year. He thought
the Fire Department doing exterior inspections kept lsornes loolcing good on the autside. He thinks
that prograin should continue, and is not happy it is done on a`complaint basis only' now.
Diehin asked staff to check into other cities who put unique restrictions olz rental properties. She
brought up ~Vinona as an example. She said they have a cap on the nulnber of rental licenses issued
for the city, or for a bloclc. It is a way to control the density of our neighborhoods, and maybe we
could use whatever Ordinance they have in place.
Hei-~inger asked haw many cities have a point of sale or truth in housing prograin in place. Eric
Meyer said he thougllt it was 12.
Peterson aslced the members if this is something they want to purst2e and take to the next step.
Nawroclci said he thinks it should go to a referenduln. If ineetings are held, he wants to be informed
of the dates and receive reports on any input received.
Diehin suggested that staff ask someone from another community that l~as a point of sale inspection.
progra~ll to attend an upcoming ineeting so that the Council can seek input from them on their
prograzil.
After a roll call vote was taken, it was decided uilanimously to proceed with the proposed schedule
to gather public input. (See attached schedule). It was understood that the specific dates for the public
meetings may change, and that the schedule was amended to only plan up to a possible first reading.
5. HABITAT FOR HUMANITY PRESENTATION
Mike Radcliff from Twin Cities Habitat for Huinanity was present to seek support from Colurnbia
Heights for a new program they are startiizg. They are seeking Anoka County Home Progra.rn funds
to do a rehab on a foreclased hoine in Columbia Heights. He explained ilow Habitat used to focus on
the construction of new homes, but has decided to move into rehaUbing existing homes since so many
are on the marlcet. They are looking for a three or four bedroom house that can be rehabbed for
$30,000-$40,000 so that a fa~nily can iuove in. He said it would be a market acquisition, and tliat
they don't presently have a specific property in mind. He explained that Habitat's program requires
the owners to set up escrow accounts for future expenses to help them become responsible
homeowners. They would like to purchase something this summer or fall, do the renovations over
the winter, so ihat the house would be ready for occupants by next spring. He reviewed the tei-~ns and
requueinents the family must meet in order to qualify. As they pay off their loalls, the money is theil
used for future projects.
Economic Development Authority Minutes
Page 7
May 27, 2009
Nawrocki and Szurek both expressed their disappointment in past projects that Habitat did in the City
because they did not give preference to local families, and that all the houses looked the same.
Radcliff said that they have added some additional designs to their new construction projects because
they also recognized that fact. He stated they receive approximately 3,000 applications a year and
out of that number, about 50 families get homes. The applicants are given points for meeting various
requirements, and local families would receive extra points. Those with the highest points, receive
the houses. He believes their program encourages responsible home ownerslup and that it is a much
better option for the city than investors turning everything into rental. Radcliff said that the owners
are required to put in about 300 hours of sweat equity for their down payment either on their own
project or other projects that Habitat does.
Herringer asked if their application affects any money the City receives. Clark stated that Anoka
County gives the money for this program from a totally separate set of funds and that it has no impact
on fiuids that Columbia Heights receives for our other programs. There also is no financial
commitment being requested from the City. All Habitat is looking for is a letter of support to move
forward with the rehabbing of one house in our city.
Motion by Williams, seconded by Diehm, to direct the Executive Director to sign a letter of support
in regards to Habitat for Humanity's application to Anoka County for HOME funds.
Roll Call: Kelzenberg, Diehm, Herringer, Williams, Peterson-Aye
Szurek and Nawrocki-Nay
MOTION PASSED.
6. RESOLUTION 2009-17 APPROVING MODIFICATION OF UNIVERSITY AVE
REDEVELOPMENT (C8) TIF DISTRICT
Clark explained that at the last meeting staff was given direction to proceed with the scattered site
housing district that will allow the City to purchase up to twenty homes. As the initial step in this
process a funding source needed to be identified for the original purchase and it was agreed upon to
use the existing fund balance, and 2009 aild 2010 increment receipts, from the C8 (University
Heights) TIF District. This will generate approximately $950,000 for the scattered site district.
Nawrocki disagreed with this plan and said that this money, or what portion of it the City would
receive upon redistribution, should go back to the t~payers.
Motion by Williams, seconded by Kelzenberg, to waive the reading of Resolution 2009-17 there
being ample copies available for the public. All ayes. MOTION PASSED.
Motion by Williams, seconded by Kelzenberg, to adopt Resolution 2009-17 adopting a modification
to the downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopinent
Project and a Modification to the Tax I~~crement Financing Plan for the University Avenue
Redevelopment (C8) Tax Increment Financing District.
Roll Call: Kelzenberg, Diehrn, Szurek, Herringer, Williams, Peterson- aye
Nawrocki- Nay
MOTION PASSED.
Economic Development Authority MinLites
Page 8
May 27, 2009
COLUMBIA HEIGHTS ECO1~rOMIC DEVELOPMENT AUTHORITY
RESOLUTION 2009-17
RESOLUTION ADOPTING A MODIFICATION TO THE DOWNTOWN CENTRAL BUSINESS
DISTRICT (CSD) REVITALIZATION PLAN FOR THE CBD REDEVELOPMENT PROJECT AND A
MODIFICATION TO THE TAX TNCREMENT FINANCING PLAN FOR THE UNIVERSITY
AVENUE REDEVELOPMENT (C8) TAX INCR~MENT F1NA1~iCING DISTRICT.
WHEREAS, it has been proposed by the Board of Commissioners ("Board") of the Columbia Heights Economic
Developinent Authority ("EDA") and the Ciry of Columbia Heights ("City") that tl~e EDA adopt a Modification to the Downtown
CBD Revitalization Plan for the CBD Redevelopment Project (the "Revitaliaation Plan Modification") and a Modification to the
Tax Increment Financing Plan (the "TIF Plan Modification } for the Ut~ive~sity Avenue Redevelopmeut (C8} Tax lncrement
I'ina~~cing District ("TIF District") therein (the Revitalization Plan Modification and the TIF Pla~l Modification are referred to
collectively l~erein as the °Modifications"), all pursuant ~o aild in coilformity with applicable law, including Minnesota Statutes,
Sections 469.090 to 469.1082, and Sections 469.1'74 to 469.1799, inclusive, as amended (the "Act"}, all as reflected ir1 the
Modifications and presented for the Board's consideration; and
tTJ~3EREAS, the EDA has investigated the facts relating to the Modifications and has caused the Modifications to be
prepared; and
WHEREAS, the EDA has performed all actions required by law to be performed prior to the adoptioi~ of tl~e
Modifications. The EDA has also requested ~he City Planning Coimnissiou to provide far review of and written comnlent on
Modifications and that the Ciry Council schedule a public hearing on the Modifications upon published notice as required by law.
NOW, THEREFORE, B~ IT RESOLVED by the Board as follows:
1. The EDA hereby reaffirms tl~e original findings for the TIF District, established as a"redevelopment district" under
Minnesota Statutes, Seetion 469.174, Subd. 10(a)(1).
2. The Modifications include modifying the l~udget and i~ringing the TIF ~Plan ii~to conforn~ance with cmz~ent Office of
State Auditor requirements and authorizing tl~e purcl~ase of properiy with increments from the TIF District. The City is not
modifying the boundaries or extending tl~e term of tl~e TIF District.
3. Tl~e EDA further finds that the Modifications will afford rnaximum opportunity, consistent with the sound needs for
Cl~e City as a whole, for the development or redevelopment of the CBD Redevelopment Project by private ente~prise in diat d1e
intent is to provide only that public assistance necessary to make the private developments financially feasible.
4. 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 and shall be placed on file in the office of fhe
Community Development Director.
5. Upon approval of the Modifications by the City Council, the Community Development Director is authorized and
directed to forward a copy of the Modifications to the Anoka County Auditor, the Minnesota Department of Revenue and the
Office of tlle State Auditor pursuant to Miiv~esota Statutes 469.115, Subd. 4a.
Approved by tl~e Board of Commissioners of the Columbia Heights Economie Development Autl~oriry tl~is 27~' day of
May, 2009.
Offered By. Williams
Second By: Kelzenberg
Roll Ca11: Kelzenberg, Dielvn, Szurek, Herringer, Williams, Peterson - Aye
Nawrocki - Nay
Economi~ Development Authority Minutes
Page 9
May 27, 2009
7e ADMINISTRATIVE REPORT
Clark stated that staff has been contacted about NSP2 funding. He explained tliis is the second round
of funding for the Neighborhood Stabilization Program. Certain communities will be eligible for
additional funding for minimum grants of $5 million dollars. One of the requirements is that the
community must prove that they can spend that amount. Anoka County is looking to possibly partner
with various cities in order to qualify. Minneapolis is hosting a meeting to discuss who may apply
for the grant and the requirements it would take to do so. Staff will be participating in this meeting.
Nawrocki asked if any progress had been made on the potential commercial development of the K-
Mart site. Clark said the last he heard was that the developer is working with a brokerage group to
possibly form a partnership so that the development can inove ahead.
8. OTHER BUSINESS
The next regular EDA rneeting will be Tuesday, June 23, 2009 at City Hall.
The meeting was adjourned at 9:30 pin
Respectfully submitted,
Shelley Hanson
Secretary
Heights Housing Protection Program
Patential Schedule/Pracess
Date 2009 Task
April 28 EDA (Council) Direction to proceed
May 1 Contact North Metro Realtors Association - state intent of new
proposed prograin and need
May 27 EDA, P&Z Members Housing Tour
Distribute proposed ordinance
May 27 Discussion direction witl~ EDA
June 1 Notice to people in attendance of previous public hearing on this
issue about upcoining informatio~i meetings
June 18 Meeting with North Metro Realtor Association
June 25 * Calendar S11ow
Jiuze 29 Meeting with Realtois, Mortgagers, Bankers etc. - City Hall
June 29 Public Information Meeting/Open House - Murzyn Hall - main
July 20 Public Inforination Meeting/Open House - Murzyil Hall - Sr
Center
August 3 CC Worlcsession - discussioll _
August 10* Fust consideration
'~ SuUject to change
Public Relations
^ Calendar Show
^ Cable TV
^ City Website
^ Northeaster Newspaper
^ SunFocus Newspaper
^ Letters to people previously attending public hearings on this ordinance
^ Public Inforination Meetings
^ Noi~th Metro Realtors Association
EDA RESOL.UTION 2009-19
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
(EDA) APPROVING THE FINANCIAL STATEMENT FOR MAY 2009 AND PAYMENT OF
BILLS FOR THE MONTH OF MAY 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 May 2009 and the list of bills for the month
of May 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.
Passed this 23rd day of June, 2009.
MOTION BY:
SECONDED BY:
AYES:
NAYS:
Attest by:
President- Gary L. Peterson
__
Shelley Hanson, Secretary
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COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY {EDA)
Meeting of: June 23, 2009
AGENDA SECTION: Business Items ORIGINATING EXECUTIVE
N0:4 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Discussion on BKV Proposal-Rental BY: Scott Clark BY:
Construction at KmartJCentral Site DATE: June 17, 2009
BACKGROUND:
Staff was recently notified of an interest by the housing developer of the Grand Central Loft project to
sell the two remaining condominium pads to a developer (Clark Gassen) who is interested in
constructing rental buildings. The developer is being represented by BKV architects, who recently
supplied the EDA through staff, with various buildings that they have designed. From a City approval
standpoint this type of facility falls into two categories 1) Approvals through the Planning
Commission based on site plan review and 2) Through the EDA based on the original development
agreement that called for all constructed units to be owner occupied. BKV will be making a
presentation to the EDA specific to the subject site and staff looks for direction on this proposal.
RECOMMENDATION:
Staff seeks direction on whether the EDA desires to continue discussions on this issue.
NOTE: It is staffs understanding that a packet for the EDA meeting will be
submitted on Monday due to the need for finalizing owner's permission regarding
the concept. If received, this information will be handed out at the EDA meeting.
EDA ACTION:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: June 23, 2009
AGENDA SECTION: Business Items ORIGINATING EXECUTNE
NO:S DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Pledge Agreement for $580,000 Taxable BY: Scott Clark BY:
G.O. Tax Increment Bonds, Series 2009B DATE: June 17, 2009
BACKGROiTND On June 8, 2009 the City Council approved the sale of a$580,000 t~able general
obligation t~ incrernent bond designated for redevelopment in the Sheffield neighborhood. This bond
will be paid for by future taa~ increment generated by the existing condominium project located in the
Kmart/Central Redevelopment TIF District. Since all ta~~cc increment funds in the City technically flow to
the EDA first, a pledge agreement between the two entities must be signed. This agreement will allow
future TIF proceeds to be allocated to the City (the obligating entity for the bonds) for bond repayment.
RECOMMENDATION:
Staff recommends approval of the resolution as written.
RECOMMENDED MOTION:
Motion: Move to waive the reading of Resolution 2009-18, there being an ample amount of copies
available to the public
Motion: Move to Adopt Resolution 2009-18, Authorizing Execution of a T~ Increment Pledge
Agreement With the City of Columbia Heights Relating To $580,000 Taxable General Obligation Tax
Increment Bonds, Series 2009B
Attachlrients: Kesolutlon 1UUy-125, YI
EDA ACTION:
COLUMBIA HEIGHTS ECONOMIC DE~ELOPMENT AUTHORITY
RESOLUTION NO. 2009-18
RESOLUTIOn AUTHORIZING EXECUTION OF A
TAX INCREMENT PLEDGE AGREEMENT WITH THE
CITY OF COLUMBIA HEIGHTS RELATING TO
~580,000 TAXABLE GEN~RAL
OBLIGATION TAX INCREM~NT BONDS, SERIES 2009B
BE IT RESOLVED by the Board of Conunissioners of the Coli,unbia Heights Econoinic
Developlnent Authority (the "Authoriry"}, as follows:
l. The President a11d the Executive Director of the Authority are hereby authorized to
execute and deliver a Tax Increment Pledge Agreement with the City of Columbia Heights,
Minnesota (the "City"), substantially in the foi7n on file in City Hall, providing for the pledge of t~
increment for the payment of the principal of, premium; if any, and interest on the City's $ 580,000
Taxable General Obligation Tax I~lcrement Bonds, Series 20098.
2. This Resolution shall be efFective as of the date hereof
Passed tlus 23rd day af June, 2009.
Offered by:
Second by:
President, Gary Peterson
ATTEST:
Secretary, Shelley Hanson
TAX INCREMENT PLEDGE AGREEMENT
by and between
CITY OF COLUMBIA HEIGHTS, MINNESOTA
and
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
THIS TAX INCREMENT PLEDGE AGREEMENT (this "Agreement"), is made and
entered into as of the 23`d day of June, 2009, by and between the City of Columbia Heights,
Minnesota (the "City"), and the Columbia Heights Economic Development Authority (the
"Authority").
WHEREAS, the Authority and the City have established the Downtown CBD
Redevelopment Project (the "Project") pursuant to Minnesota Statutes, Sections 469.001 through
469.047, as amended; and
WHEREAS, within the Project the Authority and the City have established the
KmartlCentral Avenue T~ Increment Financing District (the "TIF District") pursuant to Minnesota
Statutes, Sections 469.174 through 469.1 ~99, as atnended (the "TIF Act"); and
WHEREAS, pursuant to authority conferred by Section 469.178 of the TIF Act and
Minnesota Statues, Chapter 475, the City has determined to fmance certain redevelopment activities
within the Project through the issuance of its T~able General Obligation Tax Increment Financing
Bonds, Series 2009B in the principal amount of $580,000 (the `Bonds"); and
WHEREAS, the Authority has agreed to pledge certain tax increment revenues from the TIF
District to the City far the payment of the principal of and interest on the Bonds, as further described
herein; and
WHEREAS, pursuant to Section 469.178, Subdivision 2 of the T'IF Act, any pledge of tax
increment revenues for the payinent of the principal of and interest on the Bonds must be rnade by
written agreement by and between the Authority and the City and must be filed with the County
Auditor of Anoka County;
NOW, TF~REFORE, the City and the Authority mutually agree to the following:
(1) The City will sell the Bonds and deposit the net proceeds thereof in the Project Fund
established in the resolution awarding sale of the Bonds (the "Bond Resolution"), for
disbursement to pay costs of the Project described in the Bond Resolution.
(2) For the purposes of this Agreement, the term "Available Ta~c Increment" rneans all
tax increments as defined in Section 469.174, subd. 25 (1) ("T~ I~icrement")
derived from all property in the TIF District, except any Tax Increment that is both
(a) derived from Block 1, Outlot A and Outlot C, Gral~d Central Lofts and from
Blocks 1 througll 7 a~id Outlot B, Grand Central Lofts Second Addition (together,
the "Pledged Property"), and (b) pledged to any revenue note or contractual payment
obligation between the Authority and a developer regarding tlle Pledged Property or
portions thereof; issued or entered into before or after the date of this Agreeineilt.
(3) The Authority hereby pledges to the paynlent of the principal and illterest on the
Bands Available Tax Increment in an anlount sufficient to pay 105% of debt seivice
due on the Bonds from ti~ne to time.
(4) Not less than tl-iree (3} business days prior to each debt seivice payment date for the
Bonds, there shall be transfei-~ed fiom the fund of the TIF Dist~ict to the debt service
fund maultained by the City for the payment af the Bonds an a~zlount of Available
Tax Increment that, when taken together with amounts already on deposit in such
deUt service fund, is equal to 105% of principal of and interest on the Bonds when
due or to become due on the following date. A1iy Available Tax Increinent ui excess
of 105% of the principal a~7d i~lterest due on tlze Bonds may be retaiued by the
Authority and applied to any purpose in accorda~zce with law.
(5) Available Tax Increment sha11 be available (at the Authority's option on a parity,
superior or subordinate basis) to pay principal of a11d interest on both the Bonds and
any other obligations issued by the City, the Autharity or a~1y other public body to
finance public redevelopment costs paid or incurred by the City or the Authority in
the Project. The Authority reserves tlle right to release all or any portion of
Available TaY Increment from the pledge under this Agreement (including without
limitation the release of Tax Tncrelnent froin any specified parcel wifllin the TIF
District) to the extent pennitted by law; provided that u1 no event may the Authority
reduce t11e pledge such that Available Tax filcrement is reasonably expected to pay
less than 20 percent of principal and interest on the Bonds.
(6) An executed copy of this Agreement shall be filed with the County Auditor of
Anolca County pussuant to the requiremeilt contained in Section 469.178,
Subdivision 2 of the TIF Act.
2
IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to be
duly executed on their behalf and their seals to be hereunto affixed and such signatures and seals to
be attested, as of the day and year first abave written.
ATTEST:
City Manager, Walter Fehst
(SEAL)
ATTEST:
Executive Director, Walter Fehst
CITY OF COLUIVIBIA HEIGHTS, MIII'~1NESOTA
Mayor, Gary Peterson
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
President, Gary Peterson
(SEAL)
STATE OF MINNESOTA
COUNTY OF ANOKA
COUNTY AUDITOR'S
CERTIFICATE
I, the undersigned Couilty Auditor of ~ZOka Coi.ulty, Mini~esota, Izereby certify that a Tax
Increment Pledge Agreenzent by and beivveen the City of Columbia Heights, Minnesota and the
ColLU7lbia Heights Economic Development Authority dated
2009 and relating to
$580,400 T~able General Obligation Tax Increment Bonds, Series 2009B, dated July 1, 2009, has
been filed in my office.
WITN~SS iny hand and official seal tl~is _ day of
(SEAL)
2009.
County Auditor
Anoka County, Minnesota
Deputy
BY.
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For~City of ~ ~~1Wh~N. ~~~y ~T S
, Adrninistratiqn. Community Development and Public Safety
Fax number -'~'b (o y 3{o Q 1 ~ r~0 ~v ' 3~o?~
From - Anoka County - Carnmunity D~vetnpment Department,
- Kate Th~nstrom 763-323-57'14
oate - ~1 ~ ~ / Q ~
Regardin~ -- Property(iesy Located at: 4~+~~ ~Y~'`S~~
~3ab ro ~G.~t1 t3
~t 55'3 ~ 5fr.~.~.-,i
~ 4 tUJt~e.rso n
'~l~`57 h''~sa~
The Anolca ~ounty HRA through the Community Development Dep~artment has
purchased the property identified above. This praperty iS part of a
neighbochood stabilizatian effort far foreclosed and vacant prapertie . If for
any reasan theee are questions, concems ar safetY needs at this property
piease ca»tact Kate Thunstram CDBG/NSP Goardinator at 763-~Z3-~'~14 of#ice
pr &12-804•$350 mo6ile. _ _ --
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