HomeMy WebLinkAboutEDA AGN 08-25-09AGENDA
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
TUESDAY, August 25, 2009
7:00 p.m., City Hall, Conference Room
1. Call to OrderlRoll 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 June 23, 2009
Approve financial report and payment of bills for June and July 2009, Res. 2009-
20
Approve Desertification A3IC7 Resolution 2009-21
Approve City Council to negotiate purchase agreements for the Scattered Site
project Resolution 2009-25
Motions:
Move to Waive the Reading of Resolution 2009-20,2009-22, and 2009-25 there
being an ample amount of copies available to the public.
Move to Approve the Minutes and Resolution 2009-20, 2009-22 and 2009-25
approving payment of bills for June and July, Desertification of TIF Districts A3/C7
and approving City Council to negotiate purchase agreements for the scattered site
housing project.
BUSINESS ITEMS
4. Resolution 2009-22 -Schafer Richardson Amendment
Motion: Move to waive the reading of Resolution 2009-22 there being ample
amount of copies available to the public
Motion: Move to adopt Resolution 2009-22, Approving a Third Amendment to
Amended and Restated Contract for Private Redevelopment between the Columbia
Heights Economic Development Authority, The City of Columbia Heights and Huset
Park Development Corporation
5. Discussion
a. Rental
b. Code Enforcement
c. Vacant building registration
d. Other
6. Resolution 2009-23 HRA Levy Budget
Motion: Move to waive the reading of Resolution 2009-23 there being ample
amount of copies available to the public
Motion: Move to adopt Resolution 2009-23, Authorizing the Levy of a Special
Benefit Levy Pursuant Minnesota State Statutes, Section 469.033, Subdivision 6
and Approval of a Budget for Fiscal Year 2010.
7. Resolution 2009-24 EDA Levy Budget
Motion: Move to waive the reading of Resolution 2009-24 there being ample
amount of copies available to the public.
Motion: Move to adopt Resolution 2009-24 Resolution of the Economic
Development Authority in and for Columbia Heights EDA adopting the 2010
budget and setting the EDA levy.
$. Revenue Increase (Discussion only)
9. Administrative Report (Verbal)
^ Business Promotion -Gable dhow
^ New Perspectives update
^ Anoka County NSP update
10.Other Business
The next regular EDA meeting will be Tuesday, September 22, 2009
Additional attachments for your information
- List of County Properties acquired with NSP funds
- List of City owned Properties
- GHMC Status Report
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE REGULAR MEETING
June 23, 2009
The meeting was called to order at 7:00 pin by Vice President-Marlaine Szurek.
Members Present: Bruce Na~nocki, Marlaine Szurek, Gerry Herringer, Tannnera Diehln, Bobby
Williams, and Bruce Kelzenberg.
Members absent: Gary Peterson
Staff Present: Walt Fehst, Scott Clarlc, Sheila Cartney, and Shelley Hanson.
2. PLEDGE OF ALLEGIANCE- RECITED
3. CONSENT AGENDA
1. Approve the Minutes of May 27, 2009-Herringer noted a correction to his continents on page 5 of
the minutes.
Motion by Williams, seconded by Herringer to approve tl~e minutes of May 27, 2009, as
amended. All Ayes. MOTION PASSED.
2. Approve the Financial Report and Payment of Bills for May per Resolution. 2009-19
Nawrocki questioned account #391.40 of the Community Development Fund. Clark explained that
fund holds money transferred from the Parkview Villa Fund to our budget a11d that $8,942 has
been expended thus far.
Nawrocki asked about check #130396 for $1,000. Clark explained this was a refund of an escrow
deposit for corrections needed on an Abandoned Property. However, the sale fell through so the
deposit was returned to the person..
He then asked about check #130372 to Northeast Bank and Check #130506 to First American
Title Co. Clarlc explained these two cheeks were for the purchase of properties and that is where
the funds were deposited to complete the purchase. Check #130372 was far the purchase of 4502
Washington Street and Check # 130506 was for the purchase of 4108 7t~' Street.
Motion by Williams, seconded by Kelzenberg, to waive the Reading of Resolution 2009-19, there
being ample copies available to the public. All ayes. MOTION PASSED.
Motion by Williams, seconded by Kelzenberg, to approve t11e Financial Report and Payment of
Bills per Resolution 2009-19. All ayes. MOTION PASSED.
Economic Development Authority Minutes
Page 2
Tune 23, 2009
EDA RESOLUTION 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 requu~es the EDA to examine the statement and treasurer's vouchers or bills and if
correct, to approve them by resolution and ether the resolution in its records; and
WHEREAS, the financial statement for the month of May 2009 and the list of bills for the months of May 2009 are
attached hereto a77d 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 Cormnissioners 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 RESOLVEll the financial statements are acknowledged and received and the list ofbills 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 I Ieights Economic Development Authority.
Passed this 23rd day of June , 2009.
MOTION BY: ~ Williams
SECONDED BY: Kelzenberg
AYES: All ayes
BUSINESS ITEMS
4. SKV Presentation-Grand Central Lofts
Clark stated that BKV has pulled this item from the agenda and would not be slaking a presentation
at this meeting. Dave Kloiber (owner of the property) and Clark Gasser (Developer) are still
discussing possible development options, which could include units similar in style to the first condo
building, but would be rental is status. Clark told them the new plan would need to go before the
EDA and P & Z Commission for approval. Clark explained that Gasses intends to construct buildings
that would be similar in appearance and have a similar number of units as was originally plamled.
These would be market driven rentals a11d are not intended to be low income or subsidized units.
Economic Development Authority Minutes
Page 3
June 23, 2009
Dielun stated she had looked at the proposed plans and though it looks similar to the project in St
Anthony, she is skeptical of additional rental in general. She said we have a development agreement
in place that requires owner occupied units and we should be sensitive to the current owners who
have invested in purchasing their Lulus. If this proposal were considered, the Development
Agreement would need to be amended, as well as the Association documents. Clark stated one issue
is that the use of the Community Center would also need to be resolved. Diehm asked if staff could
research the number of units that have been sold in the existing building and the range of sale prices
for the units.
Nawrocki stated he has been in the St Anthony rental building. He said the units were very nice to
beg>li with, but after being rented for a time, the overall condition deteriorates. He believes owner
occupied units remain in a better state of repair longer. He used the LaBelle Condos as an example.
He went on to say the current owner has not been maintaiiv~lg the overall site very well so he
questions how the buildings would be managed if it were rental.
Williams had mixed feelings about the project. If they were built as luxury apartments, he may
consider it, but he doesn't feel it would be good for the health of the City to add market rate or
subsidized housing to the site.
Szurek questioned whether the city would legally be able to prohibit units from being rented as
subsidized or low-income housing. She stated there have been other places built in the city that were
intended to be for middle/upper income residents that ended up being rented to those on the Section 8
Housing Program. She thinks that City Officials should be very cautious
Diehm felt we should have owner occupied buildings or cooperative buildings whereby the residents
have a vested interest in the property. She doesn't believe that building luxury, high-end rental units
will struggle on this site due to issues in the area. The developer can say that is the intent, but she
feels reality would be much different, once built.
Hei°ringer said the current development agreement requires buildings that will be ov~mer occupied to
be constructed. If the project is changed mid stream, it is not fair to those who have already
pLU•chased their units. This type of thing is what causes distrust in govermnent and of the decisions
made by the elected officials. He tl~~lcs we need to attract residents for long term to help stabilize
our city and our schools. We want owners who will be more likely to re-invest in their properties,
than renters who use the property and move on. He had concerns that once the buildings are
constructed, if the Lulits don't rent, then adjustments are made to fill them up and they begin to
deteriorate. He is very much opposed to taking that type of risk with this site.
Kelzenberg said he couldn't support this type of project. He also felt we should stick with the
original development agreement that requires owner occupied units to encoLUage residents to make a
eonunitlnent to the city.
The general consensus was not to amend the Development Agreement to allow Rental Property to be
constructed.
Economic Development Author°ity Minutes
Page 4
June 23, 2009
5. RESOLUTION 2009-IS EDA PLEDGE AGREEMENT FOR GO BOND SERIES 20098
Clark explained that on June 8, 2009, the City Council approved the sale of a $580,000 taxable
general obligation tax increment bond designated for redevelopment in the Sheffield neighborhood.
This bond will be paid. for by future tax increment generated by the existing condomiiuum project
located in the I~nai-t/Central Redevelopment TIF District. Clark also noted that our Bond Rating was
increased which helped to lower the cost of the band.
Nawrocki expressed lus general opposition to modifying or extending any of the TIF districts. He
used the University Heights TIF District as an example, and stated that it should have been de-
certified since all the existing debts had been paid. Nawroelci opposes this action because at the time
it was established, residents were told the tax increment funds would be used for city services which
would keep city and school taxes down.
Motion by Williams, seconded by Dielull, to waive the reading of resolution 2009-18, there being ample
copies available to the public. All ayes. MOTION PASSED.
Motion by Williams, seconded by Kelzenberg, to adopt Resolution 2009-I8, Authorizing Execution of a Tax
Increment Pledge Agreement with the City of Columbia Heights relating to $580,000 Taxable General
Obligation Tax Increment Bonds.
Ayes: Kelzenberg, `xlilliams, Diehm, Szurek, and Herringer Nays: Nawrocki MOTION PASSED.
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION N0.2009-18
RESOLUTION AUTHORIZING EXECUTION OF A
TAX INCREMENT PLEDGE AGREEMENT WITH THE
CITY OF COLUMBIA HEIGHTS RELATING TO
$580,000 TAXABLE GENERAL
OBLIGATION TAX INCREMENT BONDS, SERIES 2009B
BC IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority
(the "Authority"), as follows:
1. The President and tl~e 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 form on
file in City Hall, providing for the pledge of tax increment for the payment of the principal of, premium, if any, aid interest
on the City's $ 580,000 Taxable General Obligation Tax Increment Bonds, Series 2009B.
This Resolution shall be effective as of the date hereof.
Passed this 23rd day of June, 2009.
Offered by: Williams
Second by: Ke]zenberg
Ayes: Kelzenber, Williams, Diehm, Szurek, Hei7•inger
Nays: Nawrocki
Economic Development Authority Minutes
Page 5
June 23, 2009
6. ADMINISTRATIVE REPORT
4147 7th St-House Donation-
Clark stated that the City Council took action on June 22, 2009 to approve the Scattered Site District that
allows City Staff to buy run down properties as they become available. Staff received a call from a
family this week that would like to donate their mother's former house to the City. Clark explained that
the house has been appraised at $32,000. The house has major issues such as rotted windows, no
insulation, mold, portions of the sheet rock and ceilings are missing, the foundation walls are starting to
buckle, asld it is built on a 30-foot lot. The family doesn't think the house should be sold to anyone
because of the state of disrepair. They tried to see if Habitat for Humanity wanted to renovate it, but
they turned down the offer. If the house is demolished, the lot would be considered unbuildable because
it doesn't meet the 40 foot milumum lot width. If the City accepts the donation, there would be three
options:
L Leave it as an open Iot
2. Sell to ovnlers on either side (one of which is going into foreclosure)
3. The Colulcil could at some time i11 the future grant a variance for building a new home on the site.
The worst case scenario is that the City will expend between $10,000-$15,000 to have it demolished, and
may not see a cash return on that expense.
Clark said the family does not want any formal recognition except for a city resolution for tax purposes.
Clark is asking the FDA if they are interested in accepting the donation..
Diehm felt we have to accept such an offer. If we could possibly recover any of the expenses incurred, it
would be great, but she said we can't allow this property to go back on the market.
Nawrocki stated that the County has the property valued at $103,000 and that the taxes are current. He
suggested getting someone in there to write up an estimate on what it would cost to renovate the
property.
Clark said the amount of time it would take to write up specs and arrange for bids would be a waste of
staff's time alld money.
Szurek thought we should accept the donation and tear it down. She pointed out that an appraiser valued
it at $32,000 and that Habitat already turned down the offer as it wasn't worth renovating.
Herriuger asked if the date of construction was 1916. Clark told him that was correct. He thought it
should be torn down if the walls are buckling and there is no insulation.. It doesn't sound like it would be
worth repairing.
Economic Development Authority Minutes
Page 6
Tune 23, 2009
Rental information per EDA Request-
Clark stated that Dielun had asked staff to look into how other cities restrict the number of rental
unts i11 their cities. He passed out a map showilig the number of rental units we had prior to
September 2008, compared to the number we have added since that time. He said we estimated an
additional 100 new rental properties would be added in 2009 and we have already added about 80
during the first 6 months. He went onto explain that staff obta>lled illfonnation from Winona and
Duluth and that both cities approach the restrictions fi•om a Zoning standpoint rather than a licensing
one. Winona doesn't allow more than 30% rental properties in a given block. And Duluth's policy
established for the East Side is that no single family home can have a rental license if there is another
one within 300 feet. However, Apartments and Duplexes are excluded from this rule. Clark said they
treat it as a land use and density issue, rather than a licensing one.
Nawrocki asked how a block was defined. Is it lots that back up to each other or bot11 sides of a
street? Staff will have to call W>l~ona to see if it is defined as it wasn't provided iu the information
they sent. He stated he is in favor of limiting the number of rentals somehow. However, he was
concerned with people who have their home for sale and have been unable to sell it so they rent it out
until it does sell. How do we stop owners from doing that as it could force more foreclosures if we
prevent them from renting out their property.
Diehm requested staff prepare another map that show the apartments and duplexes colored differently
from the single family homes being rented. She believes we should attempt to restrict the number of
rental licenses and the new map should give us a better idea of the concentration rate tluoughout the
city.
1`Tpclate on Qpen House-
Caitney explained that the meeting will be run differently from last year with the hope that we will
get more balanced feedback by using a more controlled approach. Therefore, the following will be
provided to each person who attends:
1. Packets will be prepared for each person
2. An agenda with ground rules will. be enclosed
3. Picture boards will be used so visual examples can be shown on what would require a correction
4. A power point presentation will be made
5. Index cards will be provided to submit questions on
6. A sununary will be made
7. Questions and Answers will be allowed at the end with a specific time limit allowed.
The EDA packets contained a chart showing the different cities that have some type of inspection program at
the time of sale and the comparisons of each program. Nawrocki noticed the fees varied and wondered if the
inspections were also different. Sheila explained that yes, they are different. Some cities are using the
International Property Maintenance Code which is more restrictive than what we have. Each city adopts
whatever code they wish to use. Ours is based on our Property Maintenance Code. Some use a Truth in
Housing format which is similar to the Disclosure Form filled out if sold by a Realtor. This just informs the
buyer of the condition, but does not require corrections be made before selling (except for Hopkins that does
require corrections).
Economic Development Authority Minutes
Page 7
June 23, 2009
Nawrocki said the Council received an e-mail from Dornza Sclunitt suggesting the 10 am meeting on
Monday June 29°i be broadcast on Cable to get the information to the public. Clark said he already spoke to
Linda Magee about this and we have no staff that is able to telecast that meeting. Several. meetings are being
held so if the public wishes to attend they have three meetings to pick from.
Update on Properties Purchased-
4135 Jefferson St It was listed far $79,000-then it was raised by a Realtor to $129,000-it is being sold
"as is". It is destroyed, full of junk and. the basement has been used as a bathroom. We
have offered $32,500
4448 Quincy St Listed for $29,900-we made full offer. Neighbors could smell odors from outside.
Tlus will go to the City Council in July for approval.
4030 Quincy St We made an offer on this one, but were too late. It has been sold. It has an addition
that was built without permits. We will get into this one because it is posted as an
abandoned property.
4450 Van Buren St Listed for $79,000-made offer of $35,000 which was rejected-made 2"`~ offer of
$39,500 and they countered with $55,000 which we will reject. There was a water
break in it so the house is fitll of mold, the paint and ceilings are peeling and sheetrock
is warped. We also will be able to get into this one as it is posted as an abandoned
property. This one has a nice 60 ft lot.
Sheila also gave an update on the properties Anoka Cotmty has been purchasing with the NSP funding,
Anoka Cotulty's policy is if the renovations will amount to more than $26,000, a Lead abatement is reduced
for the entire house and that gets too costly, so those properties are then demolished. Nawrocki wanted to
know what company they are working with for the renovations, and thought that they could give us bids on
some of the houses we are buying. Clark explained that Anoka County does a RFP and enters into a contract
with whatever company they choose, and it could not include properties we own_ We would need to go
tluough the same process.
Diehm asked staff to prepare a map showing the properties the City owns and the properties being purchased
by the County. She would also like the map to detail which ones are being demolished by the County, a11d
which ones are being renovated.
Nawrocki asked about the 37t~' & Central Project-nothing new to report
Burger King Property-We are in the process of having a concept remediation action. plan prepared.
K-Mart site-Clark said Developer is still working on getting this project off the ground, but he doesn't have
any new information.
7. OTHER BUSINESS
The next regular EDA meeting will be Tuesday, July 28, 2009 at Parkview Villa.
The meeting was adjourned at 8:30 pm
Respectfully submitted,
Shelley Hanson
Secretary
COLUMBIA HEIGI-ITS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: August 25, 2009
AGENDA SECTION: Consent
NO: 3
ITEM: Financial Report and Payment of Bills
BACKGROUND:
ORIGINATING
DEPARTMENT: EDA
BY: Sheila Cartney
DATE: August 1.8, 2009
EXECUTIVE
DIRECTOR
APPROVAL
BY:
The Financial Report is for the months of June and July 2009 Resolution 2009-20 is attached for
approval.
RECOMMENDATION:
Staff will be available to answer specific questions. if the report is satisfactorily complete, vre
recommend the Board take affirmative action to receive the Financial P.eport and approve the
payment of bills.
RECOMMENDED MOTION:
Move to approve Resolution 2009-20, Resolution of the Columbia Heights Economic
Development Authority (EDA) approving the Financial Statement and Payment of Bills for the
months of June and July 2009
EDA RESOLUTION za09-zo
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
(EDA) APPROVING THE FINANCIAL STATEMENT FOR JUNE AND JULY 2009 AND
PAYMENT OF BILLS FOR THE MONTHS OF JUNE AND JULY 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 months of June and July 2009 and the list of bills for
the months of June and July 2009 are attached hereto and made a part of this resolution; and
~Pd/HEREAS, 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 financia! 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 -day of , 2009.
MOTION BY:
SECONDED BY:
AYES:
NAYS:
President
Attest by:
Shelley Hanson, Recording Secretary
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COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: August 25, 2009
AGENDA SECTION: Consent ORIGINATING EXECUTIVE
N0:3 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Desertification of TIT District A3/C7 BY: Sheila Cartney BY:
DATE: August 7, 2009
BACKGROUND:
Statutorily TIF Districts A3/C7 has expired on August 1, 2009. As advised by the City's EDA attorney a
resolution should still be passed by Office of State Auditor (OSA) policy.
RECOMMENDATION: Approval of Resolution 2009-21.
RECOMMENDED MOTION:
Motion: Move to waive the reading of Resolution 2009-21, there being ample copies available to the
public.
Motion: Move to adopt Resolution 2009-21, Resolution decertifying 1977 CBD Revitalization Plan
(Downtown Redevelopment) Tax Increment Financing District.
Attachments: Kesolut~on lUUy-L 1, llistnct
EDA ACTION:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION N0.2009-21
RESOLUTION DECERTIFYING 1977 CBD REVITALIZATION PLAN (DOWNTOWN
REDEVELOPMENT} TAX INCREMENT FINANCING DISTRICT
Recitals
Section 1.
1.01. The Authority and the City of Columbia Heights, Minnesota (the "City")
previously established the 1977 CBD Revitalization Plan Tax hcrement Financing District
(Downtown Redevelopment) (the "TIF District") and adopted a Tax Increment Financing Plan
therefor (the "TIF Plan''), pursuant to Minnesota Statutes, Sections 273.71 through 273.78, since
recodified as Sections 469.174 through 469.1799 (the "TIF Act"). The TIF Plan was adopted by
tl~e City Council of the City on March 2, 1977.
1.02. Pwsuant to Section 469,176, Subdivision lc of the TIF Act, for tax increment
financing districts created prior to August 1, 1979, such as the TIF District, tax increment
revenues shall not be paid to an authority after August 1, 2009.
1.03. The Board has determined that it is in the best interests of the Authority to
recognize the expiration of the TIF District and to formally decertify the TIF District as of
August 1, 2009.
Section 2. TIF District Decertified; Filing.
2.01. The TIF District is hereby deemed decertified as of August 1, 2009.
2.02. Authority staff is authorized and directed to transmit a copy of this Resolution to
the Director of Property Records and Taxation of Anoka County with instructions to recognize
the expiration of the TIF District, it beil~g the intent of the Authority that no collection of tax
increment revenues from the TIF District will be distributed to the Authority after August 1,
2009.
2.03. Authority staff is directed to return any remaining tax increment in the accounts
established for the TIF District to the Director of Property Records and Taxation of Anoka
County for dish~ibution to the taxing jurisdictions within the TIF District.
1
Passed this 25`h day of August 2009.
Motion By:
Second By:
Roll Call:
President Gary L. Peterson
ATTEST:
Secretary Shelley Hanson
SULLIVA;~1
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COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: August 25, 2009
AGENDA SECTION: Consent ORIGINATING EXECUTIVE
N0:3 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Resolution 2009-25 authorizing city to BY: Sheila Cartney BY:
enter into purchase agreements for the scattered DATE: August 19, 2009
side program
BACKGROUND:
On April 28, 2009 the EDA approved a "Scattered Site Housing Program" in which. the EDA buys
mostly foreclosed houses in the city for purpose of demolition. As discussed previously staff suggested
the City enter into purchase agreements aid purchase homes on behalf of the EDA, and then do a
quitclaim deed back to the EDA. Because time is of the essence in negotiating these pwchases it is
advantageous to have the City enter into these agreements due to their more frequent meetings.
RECOMMENDATION: Staff recommends approval of the resolution as approved
RECOMMENDED MOTION:
Motion: Move to waive the reading of Resolution 2009-25, there being ample copies available to the public.
Motion: Move to adopt Resolution 2009-25, delegating to the City of Columbia Heights authorization to
negotiate purchase agreements for certain properties located within the Downtown CDB Redevelopment
Project.
Attachments' ReGnluti~n 2009-2.5
EDA ACTION:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2009-25
RESOLUTION DELEGATING TO THE CITY OF COLUMBIA HEIGHTS
AUTHORIZATION TO NEGOTIATE PURCHASE AGREEMENTS FOR
CERTAIN PROPERTIES LOCATED WITHIN THE DOWNTOWN CBD
REDEVELOPMENT PROJECT
RECITALS
Section 1.
1.01. The Authority administers the Downtown. CBD Redevelopment Project (the
"Project") within the City of Columbia Heights, Mim~esota (the "City"), which Project was
established pursuant to Mimlesota Statutes, Sections 469.001. through 469.047, as amended (the
"HRA Act").
1.02. The Authority has undertaken a program to acquire homes located in the Project
to address foreclosure problems and remediate and prevent the emergence of blight (the
"Scattered Site Housing Program").
1.03. The City, as a ``state public body" under Section 469.041 of the HRA Act, is
authorized to make contributions to the Project.
1.04. In order to acquire certain properties in a timely fashion, the Authority has
detei-~nined to request that the City assist with such acquisitions by negotiating with sellers and
enteri,zg into purchase agreements (the "Purchase Agreements") on behalf of the Authority.
Section 2. AUt~rovals.
2.01. The Authority hereby requests the City, using its powers as a "state public body"
under the HRA Act, to negotiate Purchase Agreements for properties located in the Project that
are consistent with the criteria for the Scattered Site Housing Program, as approved by the
Authority on Apri128, 2009.
2.02. The City Council of the City is authorized and directed to approve and enter into
Purchase Agreements, provided that the City's rights in each Purchase Agreement sha1.1 be
assigned to the Authority.
2.03. The Board hereby accepts and approves each Purchase Agreement entered into by
the City and assigned to the Authority, provided that the Purchase Agreements are consistent
with the criteria for the Scattered Site Housing Program.
1
Passed this 25`'' day of August 2009
Offered by:
Second by:
Ro11 Call:
ATTEST:
President, Gaiy L. Peterson
Secretary, Shelley Hanson
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Special Meeting of: August 25, 2009
AGENDA SECTION: Business Items ORIGINATING DEPT. EXECUTIVE
NO: 4 Community Development DIRECTOR
APPROVAL
ITEM: Adopt Resolution 2009-22, Third BY: Sheila Cartney BY:
Amendment to Amended and Restated DATE: August 11, 2009
Contract for Private Redevelopment -
Huset Park Development
BACKGROUND:
On October 25, 2004 the City, EDA and Huset Park Development Corporation entered into contract for
private redevelopment of the "Industrial Park." On August 1, 2007 the same parties agreed and entered
into an Amended and Restated Contract for Private Redevelopment, and on February 9, 2009 the same
parties entered into an Amended and Restated Contract for Private Redevelopment changing
commencement and completion dates for development.
The "Minimum Improvements" in the contract is broken out into phases and includes three different
housing types and one commercial space. According to the contract there are to be a total of 277
townhouse units, 50 senior units, and 183 condominium or cooperative housing units and 11,650
square feet of commercial space.
Due to the down turn in the housing market and economic conditions, Schafer Richardson has
requested additional completion date amendments to the development contract and a reduction in lot
price from $39,000 to $22,500 per townhome. Section 4.3(c) states "if the Redeveloper is making
substantial progress with respect to the redevelopment project, and is unable to meet one or more of
the above-referenced deadlines, the Authority and Redeveloper shall negotiate in good faith for a
reasonable period to extend the time in which necessary actions} must be taken or occur, the lapse of
which time would otherwise constitute a default of this Agreement."
The following table represents the second amendments requested per phase and the new proposed
Renuest
Phase Ori final Date Amended Date (Feb 2009) Pro osed Date
IB Housin Com lete b 12/31/2008 Com lete b 4/30/2011 Com lete b 10/31/2011
IIA Housin Com lete b 4/30/09 Com lete b 6/1/2010 Com lete b 6/30/2011
IIB Housin Com lete b 12/31/09 Com lete 7/1/2012 Com fete b 4/30/2013
IIIA Housing and
Commercial Commence by 12/31!08
complete b 12/31/2010 Commence by 4/1/2010
Complete b 4/1/2012 Commence by 12/30/2011
Com Iete b 12/30/2013
IIIB Housing Commence by 12/31/2010
complete b 12/31/1012 Commence by 12/31/2012
complete b 12/31/2014 Commence by 6/30/2013
Com lete b 6/30/2014
IIIC Housing Commence by 12/31!2012
complete b 12/31/2014 Commence by 12!31/2014
complete b 12/31/2016 Commence by 12/31/2014
Com lete b 12/31/2016
The following table represents the first amendment requested and the new proposed request for
townhome units sales price:
Original Amended 2007 Proposed
Chan e
$38,500 $39,000 $22,500
The development contract states the minimum improvements (stated above) but does not specifically
determine the size of the units; however, an approved site plan does. The approved Site Plan for the
development dictates the type of unit and where they are placed; therefore, the unit types and sizes
should remain the same as what was originally approved.
RECOMMENDATION: Staff recommends the EDA amend the development contract as requested to
change commencement and completion dates and reduces the lot prices to $22,500 per townhome for
the Huset Park/Parkview Redevelopment.
RECOMMENDED MOTION:
Motion: Move to waive the reading of Resolution 2009-22, there being ample amount of copies available
to the public.
Motion: Move to adopt Resolution 2009-22, a Resolution approving the Third Amendment to Amended
and Restated Contract for Private Redevelopment By and Between Columbia Heights Economic
Development Authority and Huset Park Development Corporation, approved on August 1, 2007; and
furthermore, to authorize the President and Executive Director to enter into an agreement for the same.
Attachments: Resolution 2009-22, Amendment, Project up date and Request from Shafer Richardson,
Phase Ma , 5- ear rule
EDA ACTION:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2009-22
RESOLUTION APPROVING A THIRD AMENDMENT TO AMENDED AND
RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, THE
CITY OF COLUMBIA HEIGI-ITS AND HUSET PARK DEVELOPMENT
CORPORATION
Section 1.
Recitals
1.01. The Author7ty has determined a need to exercise the powers of a housing and
redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ("EDA
Act"), and is currently administering the Downtown CBD Redevelopment Project ("Redevelopment
Project") pursuant to Milulesota Stattrtes, Sections 469.001 to 469.047 ("HRA Act").
1.02. The Authority, the City of Columbia Heights ("City") a11d Huset Park Development
Corporation (the ``Redeveloper") entered into a into An Amended a11d Restated Conh•act for Private
Redevelopment dated as of August 1, 2007, as amended by a First Amendment thereto dated pane
16, 2008 and a Second Amendment thereto dated as of February 9, 2009 (the "Contract"), setting
forth the tei~ls and conditions of redevelopment of certain property within the Redevelopment
Project, generally located east of University Avenue and south and west of Huset Park .
1.03. The parties have determined a need to modify the Contract in certain respects, and
have caused to be prepared a Third Amendment to Aiilended anal Restated Contract for Private
Redevelopment (the "Amended Contract").
1.04. The Board has reviewed the Amended Contract and finds that the execution thereof
amd performance of the Authority's obligations thereunder are in the best interest of the City and its
residents.
Section 2. Authority At~proval• Further Proceedings.
2.01. Tl~e Amended Contract as presented to the Board is hereby in all respects approved,
subject 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 docwnents by such officials
shall be conclusive evidence of approval.
2.02. The President a~~d Executive Director are hereby authorized to execute on behalf of
the Authority the Amended Contract and any documents referenced therein requiring execution by
the Authority, and to cagy out, on behalf of the Authority its obligations thereunder.
Passed this 25`x' day of August 2009
Offered By:
Second By:
Roll Call:
President Gaiy L. Peterson
ATTEST:
Secretary, Shelley Hanson
THIRD AMENDMENT TO
AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT, made on or as of the day of , 2009,
by and between COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY,
COLUMBIA HEIGHTS, MINNESOTA, a public body corporate and politic (the "Authority"),
established pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (hereinafter referred to
as the "Act"), the CITY OF COLUMBIA HEIGHTS, a Mimlesota municipal corporation (the
"City") and HUSET PARK DEVELOPMENT CORPORATION, a Minnesota corporation (the
"Redeveloper").
WITNESSETH:
WHEREAS, the parties hereto entered into that certain Amended and Restated Contract
far Private Redevelopment dated as of August 1, 2007, as amended by a First Amendment
thereto dated as of June 16, 2008, as further amended by a Second Amendment thereto dated as
of February 9, 2009 (the "Contract"), providing for redevelopment of certain property in the City
described as the Redevelopment Property; and
WHEREAS, the parties have detelnlined a need to amend the Contract in certain
respects, in light of changing market conditions and extension of the so-called five-year rule
under Mimlesota Statutes, Section 469.1763, subd. 3 as amended by Mimlesota Laws 2009,
Chapter 88, Article 5, Section 8;
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
1. Section 4.3 of the Contract is modified as follows (italicized language shows
revision):
Section 4.3. Completion of Construction. (a) Subject to Unavoidable Delays aild the
provisions of paragraphs (b), (c) and (d) below, the Minimum Improvements must be constructed
in accordance with the following schedule:
Phase I: As of the date of the Amended and Restated Contract, the internal. site
improvements and at least 80 percent of the required number of writs for
Phase IA are complete. Redeveloper must substantially complete all
internal site improvements for Phase IB, including roads, and at least 80
percent of required number of housing units for Phase IB, by
October- 31, 2011.
Phase II: As of the date of the Amended a11d Restated Contract, Phase IIA is under
construction. Redeveloper must substantially complete all internal site
improvements, including roads, together with at least 80 percent of
required number of housing units for Phase IIA, by June 30, 2011.
Redeveloper must substantially complete all internal site improvements,
including roads, together with at least 80 percent of required number of
housing units for Phase IIB, by April 30, 2013.
Phase III: Redeveloper must construct and complete a1.1 internal site improvements,
including roads, and at least 80 percent of the required number of housing
units, according to the following schedule:
Phase IIIA: Commence by December 30, 2011; complete by
Dece~~ber° 30, 2013.
Phase IIIB: Commence by Jz~»e 30, 2013; complete by June 30, 2014.
Phase IIIC: Convnence by December 31, 2014; complete by
December 31, 2016.
2. Section 3.1(d) is modified as follows (italicized language shows the revision):
(d) The Redeveloper shall not Transfer airy portion of the Redevelopment Property to
any Subdeveloper (or to itself or an Affiliate for any Phase or portion thereof retained and
constructed by Redeveloper) at price less than the following:
$ 22, 500 per townhome (As arne»ded August 25, 2009)
$ 18,000 per condominium or cooperative unit
$300,000 for the convnercial portion of Phase III
$10,000 per seiuor rental uiut (as amended June 16, 2008)
The above amounts are payable at closing on any such Transfer, provided that if the Subdeveloper
uildel-takes site improvements, any portion of such payment attributable to the cost of site
improvements on the transferred Parcel may be deducted and paid by the Subdeveloper as those
costs are inciu-red. In addition, each Subdeveloper shall pay to the Redeveloper at closing on such
land sale the net present value of Projected Tax Increment from the transferred Parcel (calculated as
described in Section 3.8(b) hereof). Upon such payment, the Authority shall issue the Initial Note
for such amount, subject to all the terms and conditions of Section 3.8.
3. Section 3.8(e) of the Contract is modified as follows: (italicized language shows the
revision):
(e) Authorization and Delivery. Each Initial Note will be issued in substantially the
foinl set forth in the Authorizing Resolution attached as Schedule D. Each Authorizing Resolution
will be approved upon mutual detel7nination by the Authority and Redeveloper of the principal
amounts of and payment schedule for each Initial Note in accordance with the terms of this Section..
The obligation to deliver each hutial Note is conditioned upon (i) the Redeveloper having delivered
to the Authority an investment letter for the Initial Note in a form reasonably satisfactory to the
Authoi~ty; and (ii) the Redeveloper having deliver°ed to the Authority, and the Authority having
accepted, certification of Public Redevelopment Costs in accordance with paragraph (d) in at
2
least the principal amount of the Initial Note, or the Redeveloper having satisfied the conditions
of paragraph (f) below; and (iii} there being no uncured Event of Default by Redeveloper under
this Agreement with respect to the relevant Phase. Notwithstanding anything to the contrary in
this Agreement, if the conditions for delivery of the any Initial. Note are not met by January 1, 2015,
which is ten years after the date of certification of the TIF District by the County, the Redeveloper's
rights and interest to receive such Initial Note terminate.
4. The Contract remains in full force and effect and is not modified except as
expressly provided herein.
3
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed
in its name asld behalf and its seal to be hereunto duly affixed and the Redeveloper has caused
this Agreement to be duly executed in its mule and behalf on or as of the date first above written.
By
By
STATE OF MINNESOTA )
SS.
COUNTY OF ANOKA }
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
Its President Gary L. Peterson
Its Executive Director, Walter R. Fehst
The foregoing instrument was acknowledged before me this day of
2009, by and Walter R. Fehst, the President
and Executive Director of the Columbia Heights Economic Development Authority, a public
body politic and corporate, on behalf of the Authority.
Notary Public
4
CITY OF COLUMBIA HEIGHTS
By
STATE OF MINNESOTA )
SS.
COUNTY OF ANOKA )
Rv
Its Mayor Gary L. Peterson
Its City Manager, Walter R. Fehst
The foregoing instrument was acknowledged before me this day of
2009, by Gary Peterson. and Walter R. Fehst, the Mayor and City Manager
of the City of Columbia Heights, a Minnesota miulicipal corporation, on behalf of the City.
Notary rublic
5
HUSET PARK DEVELOPMENT
CORPORATION
By
STATE OF MINNESOTA )
SS.
COUNTY OF _ }
President and Chief Executive Officer
The foregoing instrument was acknowledged before me this day of
2009 by Bradley J. Schafer, the President and Chief Executive Officer of
Huset Park Development Corporation, a Minnesota corporation, on behalf of the corporation.
Notary Public
6
CONSENT BY ASSIGNEE
The undersigned, as assignee of certain rights of Redeveloper under the attached Amended and
Restated Contract for Private Redevelopment (the "Amended Contract"), hereby consent to all
terms of the Amended Contract; provided that notl~lg in this consent will alter or affect the
rights of undersigned under the Agreement of Purchase and Sale (Finished Lots) between The
Ryland Group, Inc. and Redeveloper dated April 18, 2005, as amended.
THE RYLAND GROUP, INC.
STATE OF MINNESOTA )
SS.
COUNTY OF )
By
Its
The foregoing instrument was acltnowledged before me this
2009 by ,the
of the Ryland Group, Inc., a Maryland corporation, on behalf of the corporation.
Notary Public
day of
7
CONSENT BY ASSIGNEE
The undersigned, as assignee of certain rights of Redeveloper under the attached Amended and
Restated Contract for Private Redevelopment (the "Amended Contract"}, hereby consent to all
tei-~ns of the Amended Contract.
PARKVIEW HOMES, LLC
By
Its
STATE OF MINNESOTA )
SS.
COUNTY OF )
The foregoing instrument was aeicnowledged before me this
2009 by ,the
Parlcview Homes, LLC, a Minnesota limited liability company, on behalf of tl~e company
IvTotary Public
day of
of
8
He yet Park Development- Update of Status 1-30-09
Sheila Cartney -Status update to EDA ~-12-49.doe
Page 1 of 2
From: "Maureen Michalsl~i" <mmichalski~sr-re.com>
To: "Sheila Cartney" <Sheila.Cartneynaci.columbia-heights.lmn.us>
Date: 8/13/2009 11:24 AM
Subject: Status update to EDA 8-12-09.doc
_ ._.
Sheila, Attached is the status update far EDA meeting that you requested. Please let me know if any
questions.
Maureen
Huset Park Development=U.~date of Status 8-12-09
Phase IA-
To date alt site improvements have been made and alt 123 tov~nnllome unnits in Phase IA have been
completed. All Ryland Homes (Ryland.) and Huset Park Development Corporation (HPDC) units leave been
sold in this phase, except one HPDC unit. In 2008 Ryland sold 5 units and HPDC sold 1 unit in Phase I. In
2009, to date, Ryland sold 3 units and HPDC sold 4 units.
Phase IB-
This site, located at the east side of Phase IA along Jefferson Street, is planned to be senior housing. Half of
the site will be developed by the National Handicapped Housing Institute (NHHI) and half of the site will be
developed by Huset i'ark Development Corporation. Because these buildings will share a party wall it is
planned that conshuction of the two pardons will be very close to concurrent. In lone of 2008 the National
Handicapped Housing Institute placed an application to the U.S. Department of Housing and Urban
Development (HUD) for funds to construct their portion of the development. NHHI received notice in fall of
2008 that the application had been "technically rejected" because of one existing monitoring well on the
site. Once technically rejected an application is removed from consideration for funding in that round.
NHHI has met with HUD to discuss the 2008 technical rejection and a 2009 funding application. ProSource,
the environmental consulting fine on this project, abandoned the well that caused tents technical rejection in
spring of 2009.
The 2009 HUD SuperNOFA leas been unusually late this year, and to date has not been announced. When it
is published NHHI intends to apply for these funds. If successful in the 2009 round, NHHI would be notified
of fmiding in early 2010 and we would anticipate construction of the two senior buildings at this site
beginning in late sununer/early fall of 2010, and opening for occupancy approximately one year later.
Phase ITA-
This phase is currently under construction. 111 this phase there are 55 townhomes built. Ryland has sold 61
homes to date it Phase IIA, of which 22 sales were in 2008 and 18 of which were sales ii 2009. Ryland
does not currently control any vacant and buildable lots on the site. Currently HPDC and Ryland are
negotiating a bulk sale of all of the remaining lots in phase IIA, for a reduced lot price. Ryland will not
begin construction on any futltre buildings until lots are secured and 50% of the ul~its within a building are
pre-sold.
file://C:\Documents and Settings\CCH-User\Local Settings\Temp\XPgrpwise\4A83F7FOcchgw... 8/13/2009
H~ set Park Development- Update of Status 1-30-09
Page 2 of 2
Phase IIB-
Site improvements, including streets and utilities, have not yet been constructed far this phase, and this
portion of the site has not yet been re-platted.
The estimated begimzing of the site improvements for this phase is not yet known. The site improvements
will not begin before 2011 unless significant changes in housing and financial markets occur.
Phase MI-
As planned, Phase III is scheduled to be a mixed use development. Site improvements and re-platting have
not yet occurred for this phase of the development. Schafer Richardson is actively marketing this land for
potential connnercial/mixed use opportunities tluough: Minnesota Commercial Association of Realtors
(MNCAR), CCIM Loopnet, the Schafer Richardson website, and email blasts to brokers on a regular basis.
file://C:\Documents and Settings\CCH-User\Local Settings\Temp\XPgrpwise\4A83F7FOcchgw... $/13/2009
Page 1 of 1
Sheila Cartney -Updates to gIuset Park Development Agreement
From: "Maureen Michalski" <minichalski~sr-re.com>
To: "Sheila Cartney" <Slzeila.Cartney(a~ci.columbia-heights.mn.us>, "Scott Clark"
<Scott.Clark~7aci.columbia-heights.mn.us>
Date: 8/10/2009 2:30 PM
Subject: Updates to Huset Park Development Agreement
Scott and Sheila,
As we discussed, we would like to propose the follo~vuig modifications to the development agreement for the
1/DA to consider on 1lugust 25~':
Section 4.3 Completion of Construction modified to:
Phase I- 80% by Oct 31, 2011
Phase II- 80% of IZA by 6/30/2011, 80% of IIB by 4/30/2013
Phase III- IIIl~ commence 12/30/2011, complete by 12/30/2013; IIIB commence by 6/30/2013, complete by
6/30/2014; IIIC commence by 12/31/2014, complete by 12/31/2016.
Section 3.1d modified to X22,500 per townhome.
Tlus would be the Third .Amendment to the Amended and Restated Contract for Private Redevelopment.
Please let me luzo~v if you need anytlvng else from me in order to proceed. Both Brad and I plan on attenduzg
the meeting on the 25~'. Thank you.
Maureen
Maureen Micilalsl~i
Project Malinger
Schafer Richardson, )Eno.
Direct- 6"12-359-5542
~Iobilc- 612-599-991-5
ininichalshi c sr_re.coin
Please consider the environment before printing this e-mail.
file://C:\Documents and Settings\CCH-User\Local Settings\Temp\XPgrpwise\4A802F1Acchg... 8/18/2009
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Chapter 88 -Revisor of Statutes
Sec. 8. Minnesota Statutes 2008, section 469.1763, subdivision 3, is amended to read:
Subd. 3. Five-year rule. (a} Revenues derived from tax increments are considered
to have been expended on an activity within the district under subdivision 2 only if one
of the following occurs:
(1) before or within five years after certification ofthe district, the revenues are
actually paid to a third patty with respect to the activity;
(2) bonds, the proceeds of which must be used to finance the activity, are issued and
sold to a third party before or within five years after certification, the revenues are spent
to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
reasonably expected to be spent before the end of the later of (i) the five-year period, or
(ii) a reasonable temporary period within the meatvng of the use of that term under section
148(c)(I) of the Internal Revenue Code, or are deposited in a reasonably required reserve
or replacement fund;
(3) binding contracts with a third party are entered into for performance of the
activity before or within five years after certification of the district and the revenues are
spent under the contractual obligation;
(4) costs with respect to the activity are paid before or within five years after
certification of the district and the revenues ai°e spent to reunburse a party for payment
of the costs, including interest on unreimbursed costs; or
(5) expenditures are made for housing purposes as pei7nitted by subdivision 2,
paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
by subdivision 2, paragraph (e).
(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
the original refunded bonds meet the requirements of paragraph (a), clause (2).
c For a redevelol prnent district or a renewal and renovation,district certified after
June 30, 2003_, and before At~ri120, 2009, the five-year ep nods described in_para~rai~h
~} are extended to ten years after certification of the district._This extension is provided.
prul~arily to accommodate Bela sin dev-elot~ment activities clue to unanticipated economic
circumstances.
_ __-
EFFECTNE D__ATE.T11t section i eff~cti_ve the_day followin_.g final enactme~~t.
Page 1 of 1
https://www.revisor.leg.state.mn.us/laws/?id=88&doctype=Chapter&year=2009&type=0 8/18/2009
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: August 25, 2009
AGENDA SECTION: Business Items ORIGINATING EXECUTIVE
NO: S DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Discussion and Direction on Rental BY: BY:
Housing, Code Enforcement anal Foreclosure DATE: August 17, 2009
Issues
BACKGROUND:
In response to a variety of housing issues the City has implemented a wide
variety of housing programs in 2009, including the Abandoned and Vacant Property Ordinance,
Scattered Site Housing Program (including working with the County with NSP funding}, instituting a
new program for inspection for first time rentals, Make Heights Your Home program and continuing
on with a deferred loan program and a rebate program administered through GHMC. In addition to the
aforementioned staff has been. working on the Sheffield neighborhood with accessing funding options,
property acquisitions and working with the Police Department to improve landlord relationships.
Staff views that the City needs to continue discussions on housing and neighborhood issues,
specifically 1) Rental property issues 2) Code Enforcement and 3) Vacant properties. The city has a
wide range of housing stress points that makes it critical for the community to discuss where we go in
the future. At the present time, the city has defined neighborhoods that have over 15% foreclosure
rates, severe price point deflation, rapidly increasing rental properties (single family conversion) and a
number of factors that will contribute to a large transition and sale of properties within the next few
years. The following should serve as a discussion framework for the EDA:
Rental Property: In early August the Conununity Development Department held a meeting with
Police and Fire to discuss overall housing issues. At this time, the City has changed its past routine
rental property inspection schedules and for single family and duplexes interior units are inspected
every four years with exteriors inspected annually. For apartments exteriors and conunon areas are
inspected annually with individual units inspected every four years. The City has also experienced a
severe increase in rental properties and from 2006 to 2009 with over 200 net new rental licenses being
issued. Over eighty new licenses alone has been issued since Sept. 2008 (the month that the rental
moratorium went off ), with approximately 70 of these being single family. (See attached map). The
two policy questions for the EDA are: 1) Does the City want to develop an Ordinance limiting single
family rentals based on a "percentage of area calculation"? And 2) how often should rentals be
inspected?
Code Enforcement: Due to staff cuts the Fire Department's working policy for code enforcement
has changed.. Currently, there is approximately 1.75 FTE's devoted to inspections which are done on a
complaint basis, albeit that major corridors aild vacant properties are reviewed on a systemic process.
111 addition to this, an internship position was created which enables more time to be devoted to code
enforcement. The primacy policy question for the EDA is "how critical is code enforcement to the
City's overall conllnunity health" and what changes should or should not occur. This question is
important to answer in relation to the 2010 budget discussion.
Vacant Properties: As seen on the attached map the City still has a significant inventory of vacant
properties that has been created by the foreclosure market. Staff anticipates that the City still could
have over 100 additional foreclosures by the end of 2010. The question for the EDA is whether the
city should increase its review of theses properties, possibly through a registration program. There are
direct costs associated with vacant properties such as continuously monitoring them for code
enforcement, issues of security and neighborhood blight and the need to ensure that abandoned
properties reenter the market in good condition as these properties have a greater level of deterioration
due to them being vacant for a Long period of time. The question for the EDA is- do we want to
increase our regulatory issues associated with these properties with some level of registration program
(see an example of a program recently instituted by the City of Crystal), or are there other program
thoughts related to this issue?
Based on direction fiom the EDA, staff will bring back more detailed information/programs, etc. to
uzlplement selected items,
RECOMMENDATION: Staff seeks direction from the EDA regarding various programs
Attachments: Miscellaneous re~~tal and_foreclosure maps, City of Crystal Vacant
EDA ACTION:
CJ[TV OI+' CIrYSTAL
®RY~~AIAI~ICJE #2009 - 0~
AN ORDINANCE RELATING TO REGISTRATION AND
REGULATION OF VACANT BUILDINGS
AMENDING CITY CODE CHAPTER 400
The City of Crystal Does Ordain:
Crystal City Code Chapter 400 is hereby amended by adding a new section 435, Vacant Building
Registration, as follows:
Section 435 -Vacant Building Registration
435.01. Purpose and Findings. Subdivision 1. The Crystal city council is enacthzg this section to
help protect the public health, safety and welfare by establishing a program for the identification
and regulation of vacant buildings within the city. This section also determines the
responsibilities of owners of vacant buildings and provides for administration, enforcement, acid
penalties associated with same.
Subd. 2. The city council finds that vacant buildings are a major cause and source of
blight in residential and non-residential neighborhoods, especially when the owner or responsible
party of tlae building fails to actively maintain and manage the building to ensure it does not
become a liability to the neighborhood. Vacant buildings often attract transients, homeless
people, trespassers and criminals, including drug abusers. Neglect of vacant buildings, as well as
use of vacant buildings by transients and criminals, creates a risk of fire, explosion or flooding
for the vacant building and adjacent properties. Vacant properties often are used as dumping
grounds far junk and debris and often are overgrown with weeds and grass. Vacant buildings that
are boarded to prevent entry by transients and other long-term vacancies discourage economic
development and retard appreciation of property values. There is a substantial cost to the City for
monitoring vacant buildings whether or not those buildings are boarded. This cost should not be
borne by the general taxpayers of the community; but, rather, these costs should be borne by
those who choose to leave their buildings vacant.
435.03. Definitions. For the purposes of this section, the terms defined in this subsection have
the meanings given theirs and shall apply in the interpretation and enforcement of this section.
"Abandoned Property" means property that the owner has surrendered, voluntarily relinquished,
disclaimed, or ceded all right, title, claim, and possession, with the intention of not reclaiming it
"Compliance Official" means the Gity Manager and the City Manager's designated agents
authorized to achmin.ister and enforce this section.
"Building" is any roofed structure used or intended for supporting or sheltering any use or
occupancy.
Ordinance 2009-02 V2 Page 1 of 8
"Owner" or "Property Owner" is the owner of record according to Hennepin County property tax
records; those identified as owner or owners on a vacant building registration form, a holder of
an unrecorded contract far deed, a mortgagee or vendee in possession, a mortgagor or vendor in
possession, an assignee of rents, a receiver, an executor, a trustee, a lessee, other person, firm or
corporation in control of the freehold of the premises or lesser estate therein. An owner also
means any person, partnership, association, corporation or fiduciary having a legal or equitable
title or any interest in the property or building. This includes any partner, officer or director of
any partnership, corporation, association or other legally constituted business entity. All owners
shall have joint and several obligations for compliance with the provisions of this section.
"Responsible party" is an owner, entity or person acting as an agent for the owner who has direct
or indirect control or authority over the building or real property upon which the building is
located; any party having a legal or equitable interest in the property. Responsible party may
include but is not limited to a realtor, service provider, mortgagor, leasing agent, management
company or similar person or entity.
"Vacant building" a building is vacant if no person or persons actually and currently conducts a
lawful business or lawfully resides or lives in any part of the building on a permanent,
nontransient basis in accordance with city of Crystal zoning regulations.
435.05. Vacant Building Registration. Subd. 1. Application. The owner or responsible pasty shall
register a vacant building with the city no later than thirty (30) days after the building becomes
vacant. The registration shall be submitted on a form provided by the city and shall include the
following information supplied by the owner:
a} The name, address, telephone number and email address, if applicable, of each owner
and each owner's representative;
b) The names, addresses, telephone numbers and email addresses, if applicable, of all
known lien holders and all other parties with any legal interest in the building;
c) The name, address, telephone number and email address, if applicable, of a local
agent or person responsible for managing or maintaining the property;
d) The tax parcel 'identification number and street address of the premises on which the
building is situated;
e) The date the building became vacant, the period of time the building is expected to
remain vacant, and a property plan and timetable for returning the building to
appropriate occupancy or use and correcting code violations and nuisances, or for
demolition of the building;
f) The status of water, sewer, natural gas and electric utilities.
Page 2 of 8
Ordinance 2009-02 V2
g) The owner shall notify the compliance official within thirty (30) days of changes in
any of the uifonnation supplied as part of the vacant building registration.
Subd. 2. Property Plan. The property plan identified above in 435.05, Subd. 1 f) shall
meet the following requirements:
a) General provisions. The plan shall comply with all applicable regulations and meet
the approval of the compliance official. It shall contain a timetable regarding use or
demolition of the property. The plan shall be completed within 30 days after the
building is registered.
b) Maintenance of building. The plan shall identify the means and timetable for
addressing all maintenance and nuisance-related items identified in the application.
Any repairs, improvements or alterations to the property shall comply with building
code provisions and applicable city regulations.
c) Plan Changes. If the property plan or timetable for the vacant building is revised in
any way for any propose, the revisions shall meet the approval of the compliance
official.
d) Demolition Requir°ed. If a building has remained vacant for a period of three hundred
alid sixty-five (365) consecutive days, and the compliance official has not approved
an alternative schedule in the property plan, the city may declare the building to be a
nuisance and direct the owner to demolish the building and restore the grounds. If the
owner does not demolish the building and thereby eliminate the nuisance conditions,
the City may commence abatement and cost recovery proceedings far the abatement
of the violation in accordance with section 425.25 of tlus code and Minnesota
Statutes, section 429.101.
Subd. 3. Non-compliance and Notification. If the owner does not comply with the
property plan, or maintain or correct nuisance violations, the City may commence abatement
and recover its costs for correction of those items in accordance with section 425.25 of this
code and Minnesota Statutes, section 429.101. In the case of an absent owner and ongoilig
nuisance issues, the city need not provide notice of each abatement act to the owner. A single
notice by the City to the owner is deterniined to be sufficient notice that it intends to provide
ongoing abatement until the owner corrects the violations.
Subd. 4. Exemptions.
a) Fire Damage. A building that has suffered fire damage is exempt from the
registration requirement for a period of ninety (90) days after the date of the fire if the
owner submits a request far exemption in writing to the compliance official. An
exemption request for review by the compliance official shall include the following
information supplied by the owner:
i. A description of the premises;
Page 3 of 8
Ordinance 2009-02 V2
ii. The name and address of owner or owners;
iii. A statement of intent to repair and reoccupy the building in an expeditious
manner and the time frame for completion;
iv. Actions the owner will take to ensure the property does not become a nuisance
for the neighborhood.
b) Snou1birds. Those persons who leave their residential buildings on a temporary basis
for vacation purposes or to reside elsewhere during the winter season and have the
intent to return are exempt from the registration requirement. Requests for
"snowbird" exemption will be considered annually with proper verification.
Subd. 5. Fees. The owner shall pay an annual registration fee. The registration fee will be
in an amount adopted by resolution by the City Council. The amount of the registration fee shall
be reasonably related to the administrative costs for registering and processing the registration
form and for the costs of the City in monitoring the vacant building site. The fee shall be paid ui
full prior to the issuance of any building permits or licenses, with the exception of a demolition
permit.
Subd. 6. Waiver of Fees. The city may waive the registration fee if the owner or
responsible party has paid ~ll~pa sac at d w'thothe vacant property and demonstrateso, to the
debts owed to the City tha
satisfaction of the compliance official that:
a) The property is re-occupied, with the exception of demolition, within a period of time
deemed reasonable to the compliance official; and either
b) The owner or responsible party is in the process of demolition, rehabilitation, or other
substantial repair of the vacant building; or
c} The owner or responsible party has a plan for the demolition, rehabilitation, or other
substantial repair of the vacant building in a period of time that is deemed reasonable
to the compliance official.
Subd. 7. Assessment. If the registration fee or any portion is not paid within 60 days after
billing or within 60 days after any appeal becomes final, the City Council may certify the unpaid
fees against the property in accordance with Minnesota Statutes, section 429.101.
Subd. 8. Issuance of Registration. Upon completion of the registration process and
payment of the fee, the City will issue a Vacant Building Registration to the owner. The owner
shall securely post the registration on the vacant building on a side entrance door, where
possible, that is not generally visible from the public street. If no side entrance door is available,
the registration shall be securely posted on another available entrance door.
Page 4 of S
Ordinance 2009-02 v2
Subd. 9. Failure to Re ig stet. If the property is abandoned or the owner or responsible
party fails to complete the registration process, the property will be administratively registered as
a vacant property.
435.10. Change of Ownership. A new owner(s) shall register or re-register a vacant building in
accordance with subsection 435.05 within fifteen (15) days of any transfer of an ownership
interest in a vacant building. The new owner(s) shall comply with the approved property plan
and timetable submitted by the previous owner or shall submit any changes proposed to the
property plan to the compliance official for review and approval as required by section 435.05 of
this ordinance. For the purposes of this ordinance, a new owner is an "owner" as defined in
subsection 435.03 who has purchased the vacant building since its registration by the previous
owner and has succeeded to all rights of that previous owner.
435.15. Inspections. The compliance official may inspect any vacant building in the city far the
purpose of enforcing and assuring compliance with this section and other applicable regulations.
Upon the request of the compliance official, an owner or responsible party shall provide access
to all interior portions of the building and the exterior of the property in order to complete an
inspection. If the owner or responsible party is not available, is unresponsive, or refuses to
provide access to the interior of the building, the city may use any legal means to gain entrance
to the building for inspection purposes. Prior to any re-occupancy, the owner or responsible party
shall request an inspection of the vacant building by the compliance official to determine
compliance with section 425 of this code and all other applicable regulations. All application and
reinspection fees also shall be paid prior to building occupancy.
435.20. M_ aintenance of Vacant Buildings. Subd. 1. The owner shall comply with and address the
following items in the property plan, as described ua 435.05, subd. 2.:
a) Appearance. All vacant buildings shall be so maintained and kept that they appear to
be occupied.
b) Securing. All vacant buildings shall be secured from outside entry by unauthorized
persons or pests. Security shall be ensured by normal building amenities such as
windows and doors having adequate strength to resist intrusion. All doors and
windows shall remain locked. There shall be at least one operable door into every
building and into each dwelling unit. Exterior walls and roofs shall remain intact
without holes.
Architectural (Cosmetzc) Stf~uctural Pa~~els. Architectural structural panels
may be used to secure Windows, doors and other openings provided they are
cut to fit the opening and match the characteristics of the building.
Architectural panels may be of exterior grade-finished plywood or Medium
Density Overlaid plywood (MDO) that is painted to match the building
exterior or covered With a reflective material such as plexi-glass to simulate
W111dOWS.
Ordinance 2009-02 V2 Page 5 of 8
ii. Temporary Securing. Untreated, exterior grade (CDX) plywood or similar
structural panels may be used to secure windows, doors and other openings
for a maximum period of 90 days.
iii. "Artistic" board-up. With prior approval of the compliance official, artistic
options may be utilized to secure a vacant building.
iv. Emergency securing. The compliance official may take immediate steps to
secure a vacant building at his or her discretion in emergency circumstances.
c) Fire Safety.
Fire pr°otection systems. Owners of non-residential vacant buildings shall
maintain all fire protection systems, appliances and assemblies in operating
condition and maintain underwriter laboratories (UL) monitoring of all systems.
ii. Removal of hazardous and combustible materials. The owner of any vacant
building, or vacant portion thereof, shall remove all hazardous material and
hazardous refuse that could constitute a fire hazard or contribute to the spread of
fire.
d) Plumbing fixtures. Plumbing fixtures connected to an approved water system, an
approved sewage system, or an approved natural gas utility system shall be installed
in accordance with applicable codes and be maintained in sound condition and good
repair or removed and the service terminated in the manner prescribed by applicable
codes. The building's water systems shall be protected from freezing.
e) Electrical. Electrical service lines, wiring, outlets or fixtures not installed or
maintained in accordance with applicable codes shall be repaired, removed or the
electrical services terminated to the building in accordance with applicable codes.
f) Lighting. All exterior lighting fixtures shall be maintained in good repair, and
illumination shall be provided to the building and all walkways in the same manner as
provided at the time the building was last occupied or as otherwise provided in the
approved vacant building plan.
g) Heating. Heating facilities or heating equipment in vacant buildings shall be removed,
rendered inoperable, or maintained in accordance with applicable codes.
h) Termination of utilities. The compliance official may require that water, sewer,
electricity, or gas service to the vacant building be terminated or disconnected. Prior
to the termination of any utility service, the city will provide written notice to the
owner. No utility may be restored until consent is given by the compliance official.
Utilities may be discontinued at the request of the owner or responsible party as part
of the approved vacant building property plan. The compliance official may authorize
immediate termination of utilities at his or her discretion in emergency circumstances
Page 6 of 8
Ordinance 2009-02 V2
and provide subsequent notice to the owner or responsible party.
i) Signs. Obsolete or unused exterior signs and installation hardware shall be removed.
Holes and penetrations shall be properly patched and painted to match the building.
Surfaces beneath the signs that do not match the building shall be repaired,
resurfaced, painted or otherwise altered to be compatible with the building surfaces.
All signs shall be maintained in good condition and comply with the provisions of
section 405 of this code.
j) Exterior maintenance. `fhe owner shall comply with all applicable property
maintenance regulations and city codes including, but not limited ta, the following:
1) Nuisances. The owner shall eliminate any activity on the property that constitutes
a nuisance as defined by section 425, section 2005 and section 2010 of this code.
2) Grass and weeds. Any weeds or grass shall be maintained at a height of no greater
than eight (8) inches and in accordance with section 640.13 of this code.
3} Exterior str•uctur•e maintenance. The owner shall maintain the vacant building in
compliance with section 425 as determined to be necessary by the code official.
4) Abandoned or junTc uelzicles. The owner shall keep the property free of unlicensed,
inoperable, abandoned or junked vehicles. The city may cause such vehicles to be
removed.
5) Storage and disposal of re, fuse. The storage and disposal of refuse s11a11 comply
with the requirements of section 605 of this code.
6} Animals. The owner shall ensure that all animals, including domestic, exotic and
feral, are removed from the property and handled in a humane manner.
7) Diseased, dead or Izazar•dous ta•ees. The owner shall remove diseased, dead or
hazardous trees or branches from the property in accordance with section 2020 of
this code.
8) Graffiti. The owner shall remove all graffiti from the property in accordance with
section 430 of this code.
9) Abandoned pools. Swimming pools shall be covered and secured to prevent
accidental entry, tr Bated to prevent pest harborage, and p roperly drained and
winterized.
lc) Removal of garbage and refuse. The owner of any vacant building or vacant portion
thereof shall leeep the building and property free of all garbage, refuse, litter, rubbish,
swill, filth, or other materials identified in section 605 of this code.
Ordinance 2009-02 V2 Page 7 of 8
1) Police protection systems. All alarm systems in any vacant building or portion thereof
shall be maintained in operating condition.
m) Loitering, criminal activities. Loitering or engaging in criminal activities is prohibited
in the vacant building or on the real property upon which the vacant building is
located. The owner or responsible party shall not allow these activities and shall take
immediate actions to eliminate these conditions upon notification by the city or upon
discovery.
n} Emergency Abatement. The compliance official may authorize immediate abatement
of any public nuisance or correction of any maintenance item if the compliance
official determines that conditions exist that present an imminent threat to the public
health and safety in accordance with section 425 of this code.
o} Other Codes. The property owner or responsible party shall comply with all other city
codes and applicable regulations.
435.25. No Occupancy or Trespass. No person may trespass, occupy or reside, on a temporary or
permanent basis, in any vacant building, registered or not, without the owner's consent.
435.30. Vandalism or Removal of Items Prohibited. No person may vandalize or remove items
fiom a vacant building or the property upon which it is located, including, but not limited to,
appliances, fixtures, electrical wiring, copper, or other similar items without the owner's consent.
435.35. Ap~~eal. Any person or responsible party aggrieved by a decision rendered under section
435 may appeal to the City Council. The appeal shall made be in writing, shall specify the
grounds for the appeal, and shall be submitted to the City Manager within ten business days of
the decision that is basis of the appeal.
435.40. Penalties. Any person or responsible party who violates the provisions of section 435 is
subject to penalty as provided under section 306 of this code. Nothing in this section, however, is
deemed to impair other remedies or civil penalties available to the city under this code or state
law, including, but not limited to, Minnesota Statutes, sections 463.1 S through 463.261.
Tiirst Reading: April 21, 2009
Adopted: May 5, 2009
Published: May 14, 2009
Effective: June 14, 2009
ReNae J/ wrxi 1, Mayor
ATTEST:
~ h
J ~ et K. Lewis, City Clerk
Ordinance 2009-02 V2 Page S of 8
_._ ;
;~
CITY~of
t~RYSTAL
~.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 Fax: (763) 531-1188 www.ci.crystal.mn.us
VACANT BUILDING REGISTRATION ORDINANCE
- Frequently Asked Questions -
Q: When does this ordinance go into effect?
A: The ordinance takes effect on June 14, 2009.
Q: Why did the city of Crystal adopt this ordinance?
A. To protect the public health, safety and welfare. The City Council
determined that vacant buildings are a major cause and source
of blight in residential and non-residential neighborhoods,
especially when the owner or responsible party of the building
fails to actively maintain and manage the building to ensure it
does not become a liability to the neighborhood.
Q: What are some of the impacts associated with vacant buildings
that the ordinance can address?
A: Vacant buildings often attract transients, homeless people,
trespassers and criminals, including drug abusers. Neglect of
vacant buildings, as well as use of vacant buildings by transients
and criminals, creates a risk of fire, explosion or flooding for the
vacant building and adjacent properties. Vacant properties often
are used as dumping grounds for junk and debris and often are
overgrown with weeds and grass. Vacant buildings that are
boarded to prevent entry by transients and other long-term
vacancies discourage economic development and retard
appreciation of property values.
Q: Doesn't the city already enforce its existing ordinances to get
such issues taken care of?
A: The city continuously investigates and abates violations at
vacant properties but at a substantial cost to the city. With
adoption of this ordinance, the City Council has determined that
the costs associated with achieving compliance at vacant
properties should not be borne by the general taxpayers of the
community and those who maintain their properties but, rather,
by those who choose to leave their buildings vacant.
Q: What constitutes a "vacant building?"
A: The ordinance considers a building to be vacant if no person
actually and currently conducts lawful business or lawfully
resides in any part of the building on a permanent, nontransient
basis in accordance with the Crystal zoning ordinance.
Q: When must a property owner register a vacant building?
A: When a residential, commercial or industrial building has been
vacant for more than 30 days. The registration is valid for one
year from the date of issuance. The property owner must secure
a new registration annually if the building remains vacant.
Q: How do I register a vacant building?
A: Fill out a Vacant Building Registration application form, complete
a Vacant Building Property Plan, and pay the $500 annual
registration fee.
Q: What constitutes a "Vacant Building Property Plan?"
A: The Property Plan identifies the owner's plans for the building, its
status, and the measures in place to ensure that the building is
secured and that the building and property will be maintained in
compliance with applicable city codes.
Q: Are there e:.emptions to vacant building registration:
A: 1. Extended vacationers or snowbirds - A resident on an
extended vacation or alternative living arrangement, including
over winter months, with the intention to return to the property
and live is exempt from registration. However, a verified
emergency contact number of the property owner or a
responsible party must be provided and the property must be
maintained by a local person/agent so it does not appear vacant.
Z. Fire damac,~ed property - A building that has suffered fire
damage is exempt from registration if the cleanup, repair or
demolition is completed within 90 days from the date of the fire
and if the exemption is requested in writing.
3. Any multi-tenant building on a single parcel that has one or
more occupants -Vacant tenant spaces within larger commercial
or residential buildings are not required to be registered
individually. However, if the entire multi-tenant building is
vacant, the building must be registered.
4. A parcel of land that does not have buildings.
Q: Where can I get more information?
A: Complete information and all forms are available on the city's
website at www. ci, crKstal, mn. us. You also may obtain the
necessary forms and a copy of "Vacant Building Registration At-
A-Glance"by calling Crystal City Hall at 763-531-1000.
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting o£ August 25, 2009
AGENDA SECTION: Business Items ORIGINATING EXECUTIVE
NO: 6 and 7 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: 2010 Budget-EDA and HRA Levy BY: Scott Clarlc BY:
DATE: August 17, 2009
BACKGROUND : In the review of the 2010 budget for the Community Development Department two
lcey items should be noted: 1) The budget goal has been based on past discussions between Council and
the City Manager/Finance Dept. whereby the goal of the overall City general fund budget is to be
independent of LGA revenue by 2013 (the model for this was illustrated in a staff memo to Council on
May 7, 2009). The model was based on freezing expenditures at the 2008 level with the exception of
approved pay increases (this model establishes an EDA levy amount in 2010 at $83,971). It should also
be noted that all other Community Development expenditures are outside of the General Fund Budget
but that the final 2010 expenditures meet the aforementioned City budget goals. 2) hz order to provide a
more direct nexus between the HRA and EDA Levy, staff created a new fund that more closely ties levy
revenue back to actual expenditures. Note: Previous 2009 expenditure budget had Fund 201 (Community
Development Fund) divided into Department's of Protective Inspections-42400 and Community
Development Adminsitration-46310. Conununity Development Adminsitration-463101~as row been
eliminated with the creation of Fund 204-Economic Development Authority with a corresponding
Department of Economic Development Authority-46314. Based on these new funds the comparison
between the gross 2009 and 2010 budget follows:
Budget Year 2009 2010
Protective Inspection (42400) $329,584 $263,989
Connnunity Development Admin. $295,725 $0
(46310)
Economic Development Authority Not created $346,428
(46314
TotnC Budget $625,309 $610.417
Expenditure Analysis of Budget:
1) Reduction of budget from 2009 to 2010 of $14,892
2) Reduction in line item 3050, Expert and Professional Services (201-46310) from $40,000 to
$15,000 (204-46314)
3) Reduction of salaa-y from 2008 to 2010 (both funds) of $485,890 to $473,573. Note: City
Item 6&7 page 2
Plamler salary divided between Protective Inspection and EDA fund
4) Transfer to Capital Improvement Fund 420-$51,000. Fund 204-6314 Line 7413
5) Overall reduction of $3,000 in education and seminars (primarily EDA fund)
6) All other line items materially the same
Revenue Analysis:
1) 2010 combined HRA and EDA levy materially the same as 2009
2) Increase of $8,000 in rental inspection. fees (zero budgeted in 2009 and $8,000 in 2010 under
line item 201-32125)
3) Reduction of building permits by $30,000 (line item 201-32192)
4) Increase in Abandoned Property Inspection Fee (0 budgeted in 2009 and $12,500 in 2010
under line item 201-32197).
5) All other items materially the same
Revenue Discussion:
Staff is recommending two changes to fees, these are:
1) Minimum building fee increase from $35.00 to $50.00 with the minimum fee value increasing
from $800 to $1400. The last time the minimum fee was modified was in 1998. A typical
building year has approximately 600 permits that fit this category with at least a 50% first
inspection failure rate, meaning that on an average, 1.5 inspections must be conducted per
permit.
2} Plamling fees be readjusted to a flat fee as shown on the accompanying attaclunent. At this
time, planning fees are extremely cumbersome, and expensive to administer. The process is
that an applicant pays a fee (posted as an escrow as opposed to an actual non-reimbursable
fee), each department logs in the amount of time spent on a project, sends the aforementioned
sheets back to plaiming, planning establishes the total fee and then sends back to finance a
purchasing request for a portion of the escrow to be reimbursed (which is the majority of the
time}. All of this described work mostly falls within an applicant cost ranging from $100 to
$200. Staff is recommending a flat fee system with the proviso that an additional escrow can
be posted for larger projects or cases that involve consultant or other outside expertise.
3) Abandoned property-the $250 appears to be adequate for the inspection fees portion of this
program.
Note: Any final revenue increase will need to be done by future City Council action.
RECOMMENDATION: Staff recommends budget as submitted.
RECOMMENDED MOTION:
Motion: Move to waive the reading of Resolution 2009-23 there being ample amount of copies
available to the public.
Item 6&7 page 3
RECOMMENDED MOTION:
Motion: Move to Adopt Resolution 2009-23 Authorizing the Levy of a Special Benefit Levy Pursuant
to Minnesota Statutes, Section 469.033, Subdivision 6 and Approval of a Budget for Fiscal Year 2010
Motion: Move to waive the reading of Resolution 2009-24 there being ample copies available.
Motion: Move to Adopt Resolution 2009-24 Resolution of the Economic Development Authority in
al~d For Columbia Heights EDA Adopting the 2010 Budget and Setting the EDA Levy
Attaclz~nents: 2010 Revenue and Expenditu~~e YVo~~k Sheets, Resolutions 2009-23 and 2009-24, Parkview Uilla Sta, ff Cost
Uther
EDA ACTION:
City of Columbia Heights
2010 Budget work sheet
Department Proposed
201 COMMUNITY DEVELOPMENT FUND Actual Actual Adopted Department Manager Council
42400 PROTECTIVE INSPECTION Expense Expense Budget Proposed Proposed Adopted
Line Item Description 2007 2008 2009 2010 2010 2010
PERSONAL SERVICES - - - -
1000 ACCRUED SALARIES - - - -
1010 REGULAR EMPLOYEES 207,650 217,835 224,961 174,899 -
1011 PART-TIME EMPLOYEES - - - - -
1012 SEASONAL EMPLOYEES - - - - -
1020 OVERTIME-REGULAR 927 1,344 1,445 1,600 -
1030 VACATION & SICK 4,011 3,132 - - -
1050 SEVERANCE PAY - - - -
1060 MILEAGE ALLOWANCE - - - -
1070 INTERDEPARTMENTAL LABOR SERV - - - - -
1080 INTERDEPARTMENTAL LABOR CR - - - - -
1210 P.E.R.A. CONTRIBUTION 12,974 14,181 15,169 12,280 -
1220 F.I.C.A. CONTRIBUTION 15,918 16,754 17,320 13,504 -
1225 FLEX BENEFIT FICA 258 - - - -
1300 INSURANCE 25,115 26,229 28,512 22,207 -
1400 UNEMPLOYMENT COMPENSATION - - - - -
1510 WORKERS COMP INSURANCE PREM 1,023 1,168 1,450 1,154 -
1700 ALLOCATED FRINGE - - - -
1800 INTERDEPARTMENTAL FRINGE CR - - - - -
TOTALS: PERSONAL SERVICES 267,876 280,643 288,857 225,644 -
SUPPLIES - - -
2000 OFFICE SUPPLIES 668 355 900 900 -
2010 MINOR EQUIPMENT 652 1,512 500 500 -
2011 COMPUTER EQUIPMENT - 18 300 300 -
2020 COMPUTER SUPPLIES - 187 230 230 -
2030 PRINTING & PRINTED FORMS - - 1,500 500 -
2070 TRAINING & INSTR SUPPLIES - - - - -
2170 PROGRAM SUPPLIES - 78 - - -
2171 GENERAL SUPPLIES 328 85 400 400 -
2175 FOOD SUPPLIES - 71 600 300 -
2280 VEHICLE REPAIR AND PARTS 1,293 1,186 200 400 -
2282 GAS, OIL, LUBRICANTS 645 958 1,675 1,400 -
TOTALS: SUPPLIES 3,586 4,450 6,305 4,930 -
OTHER SERVICES & CHARGES - - - - -
3041 ATTORNEY FEES-CIVIL PROCESS - - - - -
3045 ATTORNEY FEES-OTHER - - 1,000 1,500 -
3050 EXPERT & PROFESSIONAL SERV. 15,094 42,242 2,000 2,000 -
3105 TRAINING & EDUC ACTIVITIES 2,023 1,338 2,560 2,200 -
3120 EDUCATIONAL REIMBURSEMENT 508 1,500 1,500 1,500 -
3210 TELEPHONE & TELEGRAPH 531 546 705 537 -
3211 CELL PHONES 668 748 390 390 -
3220 POSTAGE 1,095 1,126 1,200 700 -
3250 OTHER COMMUNICATIONS - - - - -
3310 LOCAL TRAVEL EXPENSE 441 242 450 450 -
3320 OUT OF TOWN TRAVEL EXPENSE 339 437 350 350 -
3500 LEGAL NOTICE PUBLISHING 798 1,067 1,000 1,000 -
3600 INSURANCE & BONDS 2,579 2,270 3,293 2,531 -
3840 REFUSE - - -
City of Columbia Heights
2010 Budget work sheet
Department Proposed
201 COMMUNITY DEVELOPMENT FUND Actual Actual Adopted Department Manager Council
42400 PROTECTIVE INSPECTION Expense Expense Budget Proposed Proposed Adopted
Line Item Description 2007 2008 2009 2010 2010 2010
4000 REPAIR & MAINT. SERVICES 5,1 "L;i 4,4bt5 ~,30o a,uw -
4050 GARAGE, LABOR SURD. 928 1,417 200 300 -
4100 RENTS & LEASES 103 21 - - -
4300 MISC. CHARGES - - - - -
4310 CREDIT CARD FEES 409 646 400 500 -
4330 SUBSCRIPTION, MEMBERSHIP 1,220 645 1,190 1,190 -
4380 COMMISSION & BOARDS - - 325 300 -
4390 TAXES & LICENSES - 1,106 300 300 -
4395 STATE SALES TAX 468 - - - -
4700 CREDIT INVESTIGATION - - - - -
TOTALS: OTHER SERVICES & CHARGE 32,326 59,821 22,229 20,748 -
CAPITAL OUTLAY - - - - -
5150 VEHICLES - - - - -
5170 OFFICE EQUIPMENT - - - - -
5180 OTHER EQUIPMENT - - - - -
TOTALS: CAPITAL OUTLAY - - - - -
OTHER FINANCING USES - - - - -
7100 OPER. TRANSFER OUT -LABOR 10,850 11,134 12,193 12,667 -
7413 TRANSFER TO CAP IMP DEVELOP 201,867 - - - -
8100 CONTINGENCIES - - - - -
TOTALS: OTHER FINANCING USES 212,717 11,134 12,193 12,667 -
TOTALS: PROTECTIVE INSPECTION 516,505 356,048 329,584 263,989 -
TOTALS: COMMUNITY DEVELOPMENT F~ 516,505 356,048 329,584 263,989 -
GRAND TOTALS: 516,505 356,048 329,584 263,989 -
City of Columbia Heights
2010 Budget work sheet
Department Proposed
201 COMMUNITY DEVELOPMENT FUND Actual Actual Adopted Department Manager Council
46310 COMMUNITY DEVELOPMENT ADMIN Expense Expense Budget Proposed Proposed Adopted
Line Item Descri tion 2007 2008 2009 2010 2010 2010
PERSONAL SERVICES - - - n -
0
1000 ACCRUED SALARIES - - - ~ -
1010 REGULAR EMPLOYEES 161,771 159,271 174,472 ~ -
1011 PART-TIME EMPLOYEES - - - ~ -
1012 SEASONAL EMPLOYEES - - - p -
1020 OVERTIME-REGULAR 576 528 604 ~ -
1021
OVERTIME-PART-TIME
-
-
- m
o -
1030 VACATION & SICK 5,095 (5,408) - ~ -
1050 SEVERANCE PAY 212 9,483 - ~ -
1070 INTERDEPARTMENTAL LABOR SERV (33,943) (35,268) - ~ -
1080 INTERDEPARTMENTAL LABOR CR - - - D -
1210 P.E.R.A. CONTRIBUTION 10,109 10,348 11,695 ~ -
1220 F.I.C.A. CONTRIBUTION 13,017 13,188 13,393 ~ -
1225 FLEX BENEFIT FICA 22 100 - °' -
N
1300 INSURANCE 17,126 16,749 18,528 ~ -
1400 UNEMPLOYMENT COMPENSATION - - - ~' -
1510 WORKERS COMP INSURANCE PREM 931 989 855 w -
1700 ALLOCATED FRINGE - - - ~ -
1800 INTERDEPARTMENTAL FRINGE CR - - - ~ -
TOTALS: PERSONAL SERVICES 174,917 169,979 219,547 ~ -
-
- _ o
<
SUPPLIES
-
-
- c~
°- -
2000 OFFICE SUPPLIES 1,460 794 1,351 0 -
2010 MINOR EQUIPMENT 975 227 1,000 ~ -
m
2011 COMPUTER EQUIPMENT 128 - 1,000 ~ -
2020 COMPUTER SUPPLIES 533 145 500 D -
2030 PRINTING & PRINTED FORMS 48 - 300 ~ -
2070 TRAINING & INSTR SUPPLIES - - - °- -
2160 & CONSTRUCT MATERIALS
MAINT - - - ~ -
2171 .
GENERAL SUPPLIES 351 29 400 ~ -
2175 FOOD SUPPLIES 180 151 150 ~°,., -
1
2280 VEHICLE PARTS - - - a' -
2282 GAS, OIL, LUBRICANTS - - - -
TOTALS: SUPPLIES 3,675 1,346 4,701 -
OTHER SERVICES & CHARGES - - - -
3041 ATTORNEY FEES-CIVIL PROCESS - - - -
3050 EXPERT & PROFESSIONAL SERV. 18,590 11,478 40,000 -
3105 TRAINING & EDUC ACTIVITIES 1,578 605 4,000 -
3120 EDUCATIONAL REIMBURSEMENT - - 1,500 -
3210 TELEPHONE & TELEGRAPH 718 1,351 884 -
3220 POSTAGE 1,110 1,254 900 -
3250 OTHER COMMUNICATIONS 103 - - -
3310 LOCAL TRAVEL EXPENSE 79 249 500 -
3320 OUT OF TOWN TRAVEL EXPENSE 699 422 800 -
3410 ADVERTISING EMPLOYMENT - - - -
3430 ADVERTISING OTHER - - -
3500 LEGAL NOTICE PUBLISHING 41 121 200 -
3600 INSURANCE & BONDS 6,741 4,170 4,170 -
3810 ELECTRIC - - -
D
City of Columbia Heights
2010 Budget work sheet
Department Proposed
201 COMMUNITY DEVELOPMENT FUND Actual Actual Adopted Department Manager Council
46310 COMMUNITY DEVELOPMENT ADMIN Expense Expense Budget Proposed Proposed Adopted
Line Item Description 2007 2008 2009 2010 2010 2010
3820 WATER - - - -
3830 GAS - - - -
3840 REFUSE - - - -
3850 SEWER - - - -
4000 REPAIR & MAINT. SERVICES 3,326 2,452 3,316 -
4050 GARAGE, LABOR SURD. - - - -
4100 RENTS & LEASES 18 - 13 -
4200 PROGRAM ACTIVITIES - - - -
4300 MISC. CHARGES - - - -
4330 SUBSCRIPTION, MEMBERSHIP 1,708 596 1,800 -
4342 PROPERTY DAMAGE - - - -
4374 EMPLOYEE RECOGNITION - - - -
4376 MISCELLANEOUS CIVIC AFFAIRS - - - -
4380 COMMISSION & BOARDS 750 674 1,200 -
4390 TAXES & LICENSES - - - -
4395 STATE SALES TAX - - - -
4500 ADMINISTRATIVE EXPENSES - - - -
4600 LOANS & GRANTS - - - -
4700 CREDIT INVESTIGATION - - - -
4800 COLLECTION LOSSES - - - -
TOTALS: OTHER SERVICES & CHARGE 35,460 23,372 59,283 -
CAPITAL OUTLAY - - - -
5110 LAND - - - -
5120 BUILDING & IMPROVEMENT - - - -
5170 OFFICE EQUIPMENT - - - -
TOTALS: CAPITAL OUTLAY - - - -
OTHER FINANCING USES - - - -
7100 OPER. TRANSFER OUT- LABOR 10,850 11,133 12,194 -
7200 TRANSFER OUT TO CDBG - - - -
7280 TRANSFER OUT TO CAP PROJ - - - -
7413 TRANSFER TO CAP IMP DEVELOP - - - -
8100 CONTINGENCIES - - - -
TOTALS: OTHER FINANCING USES 10,850 11,133 12,194 -
TOTALS: COMMUNITY DEVELOPMENT ~ 224,902 205,830 295,725 -
TOTALS: COMMUNITY DEVELOPMENT F~ 224,902 205,830 295,725 -
GRAND TOTALS: 224,902 205,830 295,725
l i'
City of Columbia Heights
2010 Budget work sheet
Department Proposed
204 ECONOMIC DEVELOPMENT AUTH Actual Actual Adopted Department Manager Council
46314 ECONOMIC DEVELOPMENT AUTH Expense Expense Budget Proposed Proposed Adopted
2010 2010
Line Item Descri tion 2007 2008 2009 2010
PERSONAL SERVICES - - o
1000
ACCRUED SALARIES
~ _ -
1010
REGULAR EMPLOYEES - _
~ 197,107 -
1020 OVERTIME-REGULAR - - ~ _ -
1070 INTERDEPARTMENTAL LABOR SERV - -
1210 P.E.R.A. CONTRIBUTION - - ~ 13,753 -
1220 F.I.C.A. CONTRIBUTION - - m 15,079 -
1300 INSURANCE - - ~ 20,453 -
1510 WORKERS COMP INSURANCE PREM - - ~ 1,537 -
1700
ALLOCATED FRINGE -
-
- -
929
247 -
_
TOTALS: PERSONAL SERVICES - ~
• , -
_ - ~ -
SUPPLIES - - ~
-
350
1 -
2000 OFFICE SUPPLIES - ~
- ~ ,
000
1
2010 MINOR EQUIPMENT - ~
-
~ ,
000
1 -
2011 COMPUTER EQUIPMENT - o ,
2020
COMPUTER SUPPLIES - =
- ~ 500 -
2030
PRINTING & PRINTED FORMS -
- x- -
2160 MAINT. & CONSTRUCT MATERIALS - - ~ -
2171 GENERAL SUPPLIES - - m 400
2175 FOOD SUPPLIES - - n. 150 -
2280 VEHICLE PARTS - - ~
400
4
-
TOTALS: SUPPLIES - - ~ ,
_ _ Q - -
OTHER SERVICES & CHARGES - N
- _ _
3041 ATTORNEY FEES-CIVIL PROCESS - - ~
rn -
3045
ATTORNEY FEES-OTHER -
- ~'`' _ _
3050 EXPERT & PROFESSIONAL SERV. - 629 0 15,000 -
3105 TRAINING & EDUC ACTIVITIES - - 2,700 -
3120 EDUCATIONAL REIMBURSEMENT - -
3210 TELEPHONE & TELEGRAPH - - 903 -
- 800 -
3220 POSTAGE -
3250 OTHER COMMUNICATIONS - -
3310 LOCAL TRAVEL EXPENSE - - 500 -
3320 OUT OF TOWN TRAVEL EXPENSE - - 700 -
3410 ADVERTISING EMPLOYMENT - -
3430 ADVERTISING OTHER - -
3500 LEGAL NOTICE PUBLISHING - - 200 -
3600 INSURANCE & BONDS - - 3,790 -
3810 ELECTRIC - - _ _
3820 WATER - - _ _
3830 GAS - _ _
3840 REFUSE - _
3850 SEWER -
-
400
3
-
4000 REPAIR &MAINT. SERVICES - ,
4050 GARAGE, LABOR BURD. - - _
4100 RENTS & LEASES - - _
4200 PROGRAM ACTIVITIES - - _
4300 MISC. CHARGES - -
-
600 -
1
4330 SUBSCRIPTION, MEMBERSHIP - ,
City of Columbia Heights
2010 Budget work sheet
Department Proposed
204 ECONOMIC DEVELOPMENT AUTH Actual Actual Adopted Department Manager Council
46314 ECONOMIC DEVELOPMENT AUTH Expense Expense Budget Proposed Proposed Adopted
Line Item Description 2007 2008 2009 2010 2010 2010
4342 PROPERTY DAMAGE - - - -
4374 EMPLOYEE RECOGNITION - - - -
4376 MISCELLANEOUS CIVIC AFFAIRS - - - -
4380 COMMISSION & BOARDS - - 840 -
4390 TAXES & LICENSES - - - -
4395 STATE SALES TAX - - - -
4500 ADMINISTRATIVE EXPENSES - - - -
4600 LOANS & GRANTS - - - -
4700 CREDIT INVESTIGATION - - - -
4800 COLLECTION LOSSES - - - -
TOTALS: OTHER SERVICES & CHARGE - 629 30,433 -
CAPITAL OUTLAY - - - -
5110 LAND - - - -
5120 BUILDING & IMPROVEMENT - - - -
5170 OFF-CE EQUIPMENT - - - -
5180 OTHER EQUIPMENT - - - -
5191 ASSETS FOR RESALE - 36,076 - -
TOTALS: CAPITAL OUTLAY - 36,076 - -
OTHER FINANCING USES - - - -
7100 OPER. TRANSFER OUT -LABOR - - 12,666 -
7200 TRANSFER OUT TO CDBG - - - -
7410 TRANSFER OUT TO COMM DEVELOP 317,228 274,863 347,561 - -
7413 TRANSFER TO CAP IMP DEVELOPT - - - 51,000 -
8100 CONTINGENCIES - - - - -
TOTALS: OTHER FINANCING USES 317,228 274,863 347,561 63,666 -
TOTALS: ECONOMIC DEVELOPMENTAL 317,228 311,568 347,561 346,428 -
TOTALS: ECONOMIC DEVELOPMENT AU 317,228 311,568 347,561 346,428 -
GRAND TOTALS: 317,228 311,568 347,561 346,428
~i
City of Columbia Heights
2010 Revenue Budget work sheet
Department Proposed
201 COMMUNITY DEVELOPMENT FUND Actual Actual Adopted Department Manager Council
0 REVENUE Revenue Revenue Budget Proposed Proposed Adopted
Line Item Description 2007 2008 2009 2010 2010 2010
31010 CURRENT AD VALOREM - - - - -
31014 AREA WIDE TAX - - - - -
31020 DELINQ. AD VALOREM - - - - -
31910 PENALTIES & INTEREST - - - - -
32110 LIQUOR, WINE & BEER LICENSE 4,800 4,837 4,160 4,300 -
32122 FOOD SVC VEHICLES 50 - - - -
32125 MULTIPLE DWELLINGS - 5,600 - 8,000 -
32161 CONTRACTOR 14,880 17,875 13,000 14,000 -
32168 OTHER PROFESSIONAL & OCCUP 600 1,450 600 600 -
32178 OTHER AMUSEMENT LICENSES 1,560 1,495 1,400 1,400 -
32181 PLANNING AND ZONING FEES 2,846 5,001 1,500 2,500 -
32188 OTHER BUSINESS LICENSES 3,350 3,380 2,100 2,500 -
32191 SPRINKLER PERMIT FEES 4,572 3,556 4,000 4,000 -
32192 BUILDING & MOVING PERMITS 223,573 206,019 160,000 130,000 -
32193 ELECTRICAL PERMITS 14 - - - -
32194 HEATING PERMITS 28,655 23,556 25,000 25,000 -
32195 PLUMBING PERMITS 21,287 14,244 22,000 22,000 -
32197 ABANDONED PROP INSPECT FEE - - - 12,500 -
33160 FEDERAL GRANT - - - - -
33402 PROP. TAX RELIEF-HOMESTEAD - - - -
33422 STATE GRANT - - - - -
33641 OTHER LOCAL GOVERNMENT GRANT - - - - -
34112 ADMINISTRATIVE FEES - - - - -
36210 INTEREST ON INVESTMENTS 2,100 390 - - -
36216 LOAN INTEREST - - - - -
36217 BUSINESS LOAN INTEREST - - - - -
36219 CHANGE IN FAIR VALUE 980 30 - - -
36220 GEN. GOVERNMENT RENTS - - - - -
36230 CONTRIBUTIONS - - - - -
36260 SURCHARGE RETENTION 860 714 500 485 -
36290 OTHER MISC. REVENUE - - - - -
36294 SURCHARGES COLLECTED - - - - -
36400 PRINCIPAL REPAYMENT -LOANS - - - - -
37222 OTHER SERVICES - - - - -
39100 SALE OF LAND - - - - -
39101 GAIN/LOSS FIXED ASSET - - - - -
39140 OTHER REF. & REIMBURSEMENT - - 35,782 36,782 -
39203 TRANSFER IN FROM GENERAL FND - - - - -
39224 TRANSFER IN FROM CONTRIBUTN - - - - -
39226 TRANSFER IN FROM COMM DEV - - - - -
39227 TRANSFER IN FROM HRA - - - - -
39230 TRANSFER IN FROM EDA ADMIN 317,228 274,863 347,561 - -
TOTALS: REVENUE 627,354 563,009 617,603 264,067 -
TOTALS: COMMUNITY DEVELOPMENT F~ 627,354 563,009 617,603 264,067 -
GRAND TOTALS: 627,354 563,009 617,603 264,067
City of Columbia Heights
2010 Revenue Budget work sheet
Department Proposed
204 ECONOMIC DEVELOPMENT AUTH
0 REVENUE Actual
Revenue Actual
Revenue Adopted
Budget Department
Proposed Manager
Proposed Council
Adopted
Line Item Description 2007 2008 2009 2010 2010 2010
31010 CURRENT AD VALOREM 229,063 194,587 80,000 83,971 -
31011 HRA CURRENT AD VALOREM - - 267,561 262,556 -
31014 AREA WIDE TAX 41,849 56,079 - - -
31020 DELINQ. AD VALOREM 4,530 6,680 - - -
31800 PAYMENT IN LIEU OF TAXES - 0 - - -
31910 PENALTIES & INTEREST 298 3 - - -
33160 FEDERAL GRANT - - - - -
33402 PROP. TAX RELIEF-HOMESTEAD - - - - -
33407 MARKET VALUE HOMESTEAD CRED 11,695 12,892 - - -
33422 STATE GRANT - - - - -
33641 OTHER LOCAL GOVERNMENT GRANT - - - - -
34112 ADMINISTRATIVE FEES - - - - -
36210 INTEREST ON INVESTMENTS - - - - -
36216 LOAN INTEREST - 2,008 - - -
36217 BUSINESS LOAN INTEREST - - - - -
36219 CHANGE IN FAIR VALUE - - - - -
36225 NONDWELLING RENTS - - - - -
36230 CONTRIBUTIONS - - - - -
36400 PRINCIPAL REPAYMENT -LOANS - - - - -
39100 SALE OF LAND - - - - -
39140 OTHER REF. & REIMBURSEMENT - - - - -
39205 TRANSFER IN FROM BONDS - - - - -
39227 TRANSFER IN FROM HRA - - - - -
39242 TRANSFER IN:CAPIMP DEVLP#420 - 400,000 - - -
39252 TRANSFER IN:FOUR-CITIES BOND - 18,038 - - -
39290 RESIDUAL EQUITY TRANSFER IN - 161,021 - - -
TOTALS: REVENUE 287,436 851,307 347,561 346,527 -
TOTALS: ECONOMIC DEVELOPMENT AU 287,436 851,307 347,561 346,527 -
GRAND TOTALS: 287,436 851,307 347,561 346,527
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2009-23
AUTHORIZING THE LEVY OF
A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A BUDGET FOR FISCAL YEAR 2010
WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.1081 ("EDA
Act") the City of Columbia Heights ("City") created the Columbia Heights Economic
Development Authority (the "EDA"); and
WHEREAS, pursuant to City Resolution 2001-62 and Ordinance No. 1442, the City
Council granted to the EDA all powers and duties of a housing and redevelopment
authority under the provisions of Minnesota Statutes, Sections 469.001 to 469.047 (the
"HRA Act"), except certain powers that are allocated to the Housing and Redevelopment
Authority in and for the City of Columbia Heights (the "HRA"); and
WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the EDA and
HRA, together, to levy and collect a special benefit levy of up to .0185 percent of taxable
market value in the City upon all taxable real property within the City; and
WHEREAS, the EDA desires to levy a special benefit levy in the amount of .0185
percent of taxable market value in the City; and
WHEREAS, the EDA understands that the HRA does not expect to levy a special
benefit tax for fiscal year 2010; and
WHEREAS, the EDA has before it for its consideration a copy of a budget for its
operations for the fiscal year 2010 and the amount of the levy for collection in fiscal year
2010 shall be based on this budget.
NOW, THEREFORE, Be It Resolved by the Board of Commissioners of the
Columbia Heights Economic Development Authority:
1. The budget of $346,527 for the operations of the EDA presented for
consideration by the Board of Commissioners of the EDA is hereby in all respects
approved. Such budget includes the amount the EDA requests (by separate resolution) to
be levied by the City under Minnesota Statutes, Section 469.107, together with the amount
to be levied hereunder by the EDA under Minnesota Statutes, Section 469.033,
subdivision 6.
2. Staff of the EDA are hereby authorized and directed to file the budget with
the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6.
3. There is hereby levied, subject to the approval of the City Council of the City,
a special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, in
the amount equal to the lesser of a levy at a rate of .0185 percent of taxable market value
in City, or $262,556 with respect to taxes payable in calendar year 2010.
4. Staff of the EDA are hereby authorized and directed to seek the approval by
resolution of the City Council of the City of the levy of special benefit taxes in 2010 and to
take such other actions as are necessary to levy and certify such levy.
Motion by:
Second by:
Attest by:
Motion passed this day of
2009.
Walter R. Fehst, Executive Director Gary L. Peterson, President
2
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF COLUMBIA HEIGHTS
EDA RESOLUTION 2009-24
RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR
COLUMBIA HEIGHTS (EDA) ADOPTING THE 2010 BUDGET AND SETTING THE EDA
LEVY.
BE IT RESOLVED By the Columbia Heights Economic Development Authority (EDA) of
Columbia Heights, Minnesota as follows:
WHEREAS, the Columbia Heights City Council established the Columbia Heights
Economic Development Authority January 8, 1996 pursuant to Minnesota Statutes 469.090
to 469.1081; and
WHEREAS, the City Council has given to the EDA the responsibility for all development
and redevelopment projects and programs; and
WHEREAS, the EDA is authorized under State Statutes, Section 469.107 to levy a tax on
its area of operation for the purposes authorized under State Statues 469.090 to 469.1081,
subject to consent by the City Council.
NOW, THEREFORE BE IT RESOLVED BY THE EDA FOR THE CITY OF
COLUMBIA HEIGHTS, MINNESOTA THAT:
1. The EDA adopts and recommends to the City Council for approval a budget of
$346,527 for year 2010.
2. The EDA adopts and recommends to the City Council far approval a levy of $83,971
for year 2010.
The Executive Director is instructed to transmit a copy of this resolution to the City
Manager and Finance Director/City Clerk of the City of Columbia Heights, Minnesota.
APPROVED THIS____ DAY OF , 2009.
MOTION BY:
SECONDED BY:
ROLL CALL: AYES:
NAYS:
Attest by:
Walter R. Fehst, Executive Director
Gary L. Peterson, President
CCH
City Expenses Allocable to HRA
FYE 12/31/2008
Community Dev Director
Community Dev Assistant Director
HRA Secretary
HRA Executive Director
Assistant Finance DirectorlMisc Others
Subtotal Direct Labor
Fund 201 Overhead allocable to time spent directly on HRA
General Overhead allocable to time spent directly on HRA
Estimated Direct and Indirect City Expenses allocable to HRA
From 2008 Form B
including 3.5°l0
from Contingency
Line item
Hourly salary Applicable
& fringe rate Annual Hours
$57 150 8,568
$43 130 5,562
$2B 90 2,373
$gg 70 4,801
$44 150 6,615
27,919
4,074
4,499
36,493
Note: These calculations do not include a charge or allowance for the loss of tax capacity to the City/Library/EDA/HRA levies
resulting from the tax increment used for Parkview Villa South debt service from 1989 through 2009.
HRA AllocableExp_1.xls
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----- _
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Greater Metropolitan Housing Corporation
City of Columbia Heights -Deferred Laan Program
July 31, 2009
Deferred Loan Pool:
EDA Resolution
Total Pool: Amount
$30,643.00 (Funds Hefd @ GMHC)
$35,000.00 (Requested Funds 8!10109)
$65,643.00
DEFERRED LOANS ~ ~ _
Loan # Closing;:
Die ~ ~ ~= ~~ ~
Partict ants J
address ,.Deferred
'_ Amayrit :Billing
Amflttnt ~' Hill9n ~ Date
1 04/07/08 White, Christopher & Stac 4148 Wahin ton St NE 3,122.00
2 05/28/08 Palmer, Ryan M. 4932 6th St NE 2,838.50 $6,sso.5o n~stzoos
3 07/22/08 Modahl, Aaron J. 1019 Gould Ave NE 7,500.00
4 07/23/08 Lewis, Glenna M. 4456 Monroe St NE 7,500.00
5 07/31/08 Sheehan, Susan E. 4816 5th St NE 3,905.00
6 09/23/08 Montague, Lynefte 3930 Tyter St NE 5,777.50 $2a,ssz.so st3otzoos
7 04/27(09 Ber ,Julie L. 1036 42nd Ave NE 2,812.50
- 07/23/08 Lewis, Glenna M. 4456 Monroe (Unused Funds) -684.00
8 04/06/09 McAllister, Jerome & Pauline 4353 Monroe St NE 3,712.15
TOtaI CIOSed LOanS:
Deferred Loan Pool Balance: $36,483.65 $30,643.00 :Total Billings
$29,159.35
Greater Metropolitan Housing Corporation
City of Galumbia Heights -Rehab incentive Plogram
July 31, 2009
Amount
City of Columbia Heights -Pool Three: $ 45,137.00 (AdvancelFunds Held @GMHC)
City of Columbia Heights -Pool Four: $ 5,000.00 {AdvancelFunds Hetd @GMHC)
r _ ,.,
EDA Resolufion Add'LFunding: ~ ~O,Q¢O.Q~ ~FundsReq,,e~ted;a~~orp~) ,
Total Pooi: $100,137.00
REBATES ~ ,~ ~ -
Cf;eck~t
ChcckDate'
~ Participants`
~
~ ~=A~i~iess Rebate ~
~.rnount Billing
Amount
~ BillinDate
3103 07/09/08 Marquette, Joel & Elizabeth _
4300 Reservior Blvd (Pool Splif/TofaF. 1,982.86) 1,803.13 51,803.13 7/16/2008
3109 07/22108 Thompson, Marion D. 4249 Van Buren St NE 690.75
3113 04/22/08 Ubl, Jean 4540 Chatham Road 3,000.00
3112 09!18/07 Aztzaras, Vasilios 4158 - 6th Street NE 3,000.00
3120 04/23/08 Howard, Thomas & Carol 4607 Johnson St NE 1,108.80
3129 09104!08 Hill, Nathan & Jessica 2106 Fairwa Dr NE 425.50
3130 03/18/08 Lee, Grace & Kim, Joo 4209 Washin on St NE 1,733.47
3137 09/17/08 Trampe, Brandon 4212 Arthur St NE 250.28
3136 09/17/08 Lee, Grace & Kim, Joo 4209 Washin tan St NE 503.80
3140 09/24/08 Rau, Rochelle 4345 Jefferson St NE 870.00 511,5s2.so 9/30/2008
3142 10/08/08 Hanson, Andrea 4860 Monroe St NE 1,456.03
3150 10/15/08 Homa, Lara 3873 T ler St NE 79.70
3155 10/22(08 Riddel, Mac & Jennifer 2132 N Upland Crest 849.00
3161 10/28/08 Nielsen, Karen 4508 Polk St NE 2,729.40
3162 10/28/08 Swanson, Jerome & Mary 1002 - 40th Ave NE 3,000.00
3160 10/28/08 Moneta, Judith 4030 6th St NE 1,744.86 Ss,85s.ss 10!31/2008
3192 11/18/08 Shattuck, Chester & Clara 3971 Quinc St NE 95.60
3198 11/25/08 Lewis, Glenna 4456 Monroe St NE 817.92
3200 11/25/08 Thomson, L nette 4024 Jefferson St NE 219.11
3214 12!16!08 Colville, Sarah 4248 6th St NE 717.60
3215 12/16/08 Modahl, Aaron 1019 Gould Ave NE 3,000.00
3219 12122!08 Monta ue, L nette 3930 T ler St NE 2,955.24
3224 12/30108 Schmidt, Clara 691 - 47th Ave NE 351.00 Ss,15s.47 1/3112009
3230 01/13/09 Audette, James 4832 - 4th St NE (Rebate Reduced 344.37 $344.37 vs/zoas
3259
04/29/09 Elhshik, Abdulbaset &
Mohamed, Intesar
3900 Polk St NE
1,993.08
3273 06/03/09 Abresch, Helen 4633 Washin ton St NE 540.00
3286 06/17/09 Lee, Laksun & Je'eon 1651 37th Ave NE 330.00
3296 06/24/09 Dobbs, Nicolas & Joan 4024 - 4th St NE 896.67
3300 07/01/09 Hinrichs, Ga le 1325 37th Ave NE 1,038.00
3302 07/01/09 Sheehan, Susan 4816 5th St NE 434.89 Ss,23z.s4 8/10/2009
Total Disbursements: $36,978.20 36,978.20
COh'lTh9Et~1TS - RE6ATES 15St1ED~
-
--r----
R.ate Q~e
04/06/09
04/27/09
05/12/09
07/15/09
07/23/09
08/05/09 Parti~i_j]a.11t _ _--
McAllister, Jerome & Pauline
Ber ,Julie
Schneider, Mark
See, Verna
Var as, Rene
Fimmano, Lois -- ----- " ~,dd~ess --
4353 Monroe St NE~
1036 42nd Ave NE
4420 Stinson Blvd NE
4547 4th St NE
1002 42 1/2 Ave NE
1306 44th Ave NE
Total Commitments:
Total Disbursements and Commitments:
Remaining Pool Balance Total: Amount
556.82
421.87
3,000.00
1,011.00
72.00
666.00
$ 5,727.69
$ 42,705.89
$57,431.11 ~