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HomeMy WebLinkAboutEDA AGN 11-24-09AGENDA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY TUESDAY, November 24, 2009 7:00 p.m., City Hall, Conference Room 1 1. Call to Order/Roll Cail 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 September 22, 2009 Approve financial report and payment of bills for September and October 2009 Motions: Move to Waive the Reading of Resolution 2009-28, there being an ample amount of copies available to the public. Move to Approve the Minutes and Resolution 2009-28, approving the Financial Report and payment of bills for the months of September and October 2009 BUSINESS ITEMS 4. Make Heights Your Home 5. Mady's Site - discussion 6. Purchase of 4648 Polk Street - Resolutian 2009-29 MOTION: Move to waive the reading of Resolution 2009-29, there being ample copies available to the public. MOTION: Move to adopt Resolution 2009-29, approving acquisition of property located at 4648 Polk Street Northeast; furthermore to authorize the Executive Director to enter into an agreement for the same 7. Administrative Report a. 47t" and Central verbal update i. Commercial Project ii. Rental Project* b. Root property verbal update c. Lighthouse project update d. Senior project - Huset Park 8. Other Business a. Cancellation of December 22, 2009 meeting * BKV is offering a tour of their rental projects and would like know the EDA preference for a day trip on December 2,3,4,16 or 17`" if you are interested in doing this please check your calendar for availability and we can discuss at the meeting. ECONOMIC llEVELOPIVIENT AUTHORITY (EllA) MINUTES OF TH~ REGULAR MEETING September 22, 2009 1'he meeting was called to order at 7:00 pm by President-Gary Pcterson. Members Present: Bruce Nawrocki, 1Vlarlaine Szurek, Tammera Diehm, Gary Peterson, and Bruce Kelzenberg. Members Absent: Gerry Herrin~cr and Bobby Williams StaffPlesent: Walt F~hst, Scot~t Clai~k, and Shelley Hanson. 2. PL~DG~ OF ALLEGIANCE- RECI:TED 3. CONSENT AG~NDA 1. Apprc~ve the Minutes of August 25, 2009. 2. Appr~ve the Financial R~;port and Pay771ent of Bi11s for August 2009 per Resolution 2009-26 Nawrocki asked why there were expeizditures for accounts 408, 410, and 420 when there isn't any anilual budget for these funds. He wanted to lcnow where the money coines from to pay these expenditures. C1ark eXplained these are holding accounts for capital fund expei7ditures, and that the ainounts are covered by approved transfers from c~ther sources as decided by the ~DA. Clark will spealc with the Finance Director and get Mr. Nawrocki more detailed information on these accounts. Motion by Diehm, seconded by Szurelc, to waive tlie Reading of Resolution 2009-26, there being ample copies available to the public. AIl ayes. MOTION PASSED. Motion by Diehin, seconded l~y Szurek, to approve the Minutes and Resolution 2009-26, approving the Fina~lcial Report and paynlellt of bi11s for August 2009. All ayes. MOTION PASSED. ~DA RESOLUTION 2009-26 I2ESOLUTIQN 4F 'I'HE COLUMBIA I-IEIGHTS ECONOMIC D~VEI,OPMENT AtTTHORIT~' (EDAI APPROVING THE FINANCIAL STATEMENT FOR AUGUST 2009 AND PAYMENT OF BILLS FOR TH~ 1VIONTH OF AUGUST 2009. WHEREAS, the Colu~nbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, tc~ prepare a detailed financial statement whicl~ shows all receipts and disbursements, their natiu°e, tl~e n1o-~ey on hand, the p~ir~oses to wl~ich 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 t~o examine the statement a-~cl treasucel°'s vo~ichers or bills and if correct, to approve tl~~e~7~ by resolution and enter the reso(ut~ion in its reec~rds; and Ecc~~lomic Develop~7lent Autho--ity Minutes Page 2 September 22, 2009 WHEREAS, the fi»ancial statement for the mo»th c~i'August 2009 and the list of bills ~for the motltli of Augl~st 2009 ~re attached hei~eto ai~d ~nade a part of this resolutio»; and WHEREAS, the EDA has examined the financia) statement and t11e list of bills and ~nds thetn to be acceptable as to both form and accuracy. NOW, TH~KEFORE BE IT RESOLVF..D by tl~~e Board of Com~nissionet-s of the Columbia 1-~Ieigl~ts Economic Developr~~e~1t Author•ity that it has examinecl the atlached financial statements ancl list of bills, ~vllich are attaehed heceto and made a part he-•ec~f, and they are f~ounci to be correcY, as to form and content; ~r1d BE IT ,FURTHER RESOLVED the financial statements are ack~iowleclged and received and the list of bills as prese~~ied if~ writing are approved fc,r payment out of ~roper funds; and BE IT FURTHER RESOLVED this resolutic~n and attachments ai•e to be ~nade a pa-t of the pertnanent records of the Columbia Heights Eco~~omic Develop~nent Authoi-ity. Passed this 22nd day af September, 2009. MOTI4N BY: Diehn~ SECONDED BY: Szui-el< All ayes. Attest by: President Shelley Halis~n, Recording Secre~a~y 4. BUSINESS ITEMS SVK PRESENTATION- Clarlc explauled that BVK ~lrchitects was scheduled to make a presentation at the EDA meeting of June 23, 2009 to discuss a rental housiil~ option at the Grand Central Lofts site. BVK elected to remove the item from the agenda until a later time, but the EDA held a discussion on the general topic. At the June meeting, thEre was a consensus that rental was not an appropriate alternative to the original proposal. This message was conveyed to BKV, but they still wished to inake a presentation to the EDA at this meeting. Clark Gassen (Developer) and Jack Boarman (Sr. Partner of BVK Uroup) were present to share illustrations of the overall site plan and discLiss building desigiz options with the members. Economic Development ~luthority Minutes Page 3 September 22, 2009 Mr. Boai-~nan stated his iii7n has bcen working on developmen~s of high-end reiltal buildings of this natnre throughoilt the metro area. HE said the apartnlents are condo quality residences that attract people that often times purchase a condo or home at a later time. He showed examples of other sites in Miizneapolis, New Brighton, and St. Anthony. These higher end rental buildings would include their own anlenities and space foi- recreational and community events. The residents of these buildiilgs would not share any of tlle faeilities of the condo building. Mr Boarman explained the site plan would not change from the original, and that the biiildings would have the same sizcd foot~rint. The oi11y diffei-ence being proposed is making the building five stories inste~d of toizr a11c1 that each i~init wot~ld be smaller, so each buiIding would have 1~0 units ratller than 66 as the originally designed condo units. Each bLiilding would have appr~ximately 50% of the nnits being one bedroc~m, 20% w~uid be studio/alcove apartments, and 15-20% would be twc~ bedroom uiuts. The units would vary in size fro~n 700-1200 sf. The price poi~7t would be $1.10-$L20/sf for rent. He said the project would be constl-ucted using high quality materials, maintenance free exteriors, nice landscaping, and the units would have 9 ft ceilings with hardwood floors and balcanies. The plan would include undergrotind parking ai~d solne perin7eter, grade level parlcing to provide a ratio of onc spacc pcr unit. Fehst questioned whether that ratio would meet otir Zoning requirements. Clark said that is some~tlling that would be reviewed if the project moves forward and would be negc~tiated as part of the overall site plan consideration. Boarman said the buildings could be converted to coildo buildings at a later time if the 111arket would ii~dicate that as a viable option. Mr. Boarman said the typical rent at the Maiiz Street Village in New ~3righton is $1,500 for a 1,000 sf, two bedroom ~u1it. He said that project is about 9-10 years old and that it still is well maintained. F-~e offered to set up tours c~f tlse vaiious sites. Boarinan said the occupaney rate of all the projects has averaged at least 90%. He believes this type of project would help the transition the city is inaking in that area of tawn. New development usually I~as a positive iinpact on neighborhoods and often tunes spurs other new c~evelopment. ~Ie ~aid he worked with Pratt Ord~way on the St. Anthony project and that project also has a condo building and a rental building, and that it has worked well for that newly developed area. Clark asked if a marlcet study had been done. Gassen replied that a formal study has not been done yet, and that it would be done later as part ot the loan process. He went on to explain that one buildii~g would be built and rented prior to the second buildillg beiilg started. He said it would be at least a year before construction could start if the Board is interested in inoving forward with this project. He explained they would have to ineet with the current owner, Dave Kloeber, get all the entitleinent worl< done, talk to lenders to finance the project, do a market study, and tinalize constructioil plans before the project could start. N~awrocki stated he was opposed to changiilg the development agreement to allow the constrtiction of two rental buildings for the following reasons: 1. He feels there is elloiigh rental property in Coltullbia Heights already 2. He is opposed to downsizing the unit sizes 3. He is opposed to five stories instead of foiu-becaiise there were promises made to residents of the Cheery Heights neighborhood. 4. He is coizcerned about what happens if the buildings are not rented to 90% capacity 5. He questions what the btiildin~s will look like in 25 years Economic Development Authority Minutes Page 4 September 22, 2009 He thinlcs that ownership of property geilerally works better long term as people tend to take care of their property and iilvest i11 it if they own it. He doesn't think concentrated rental is in the best interest of the city. Naw~-ocki said he receiv~;d a m~ssage tiom Ger1y Herringer, who was absent from this nleefi~lg, that he is opposed to changin~ t11e Deve~lopment A~reement to ailow rental apartments also. Szurelc stated she wouid rather have ~ nice iooking rental btiilding that is 90% tilled tl~an a condo bnilding that is half full. Although, she was concerned whether the project would draw people willing to pay a higher end rent considering where the building would be located. Peterson stated he thinks the buildings in St. Anthony and New Brighton are well desigiled and are nice additions to the eities. He, too, is concenled about constructing a five story building as proposed. He said the fotiir story linlit was agreed upon in the Development Agreement to appease the resi~lents af t11e Cheefy Heights neighborh~od to protect their view as much as possible. Kelzenbe~-~, Szurelc, and Diehm also concurred that they cotild only support tlus project if the new buildings would not be any higher than the ~reseni condo building. Diehm said she respects Herringer's as~d Nawrocki's concerns about changin~ the plan to allow the consh-~iction of rental apartments, but has to eonsider what the best step would be to further the development of ~hat corridor. She saicl it may not be exaetly what we want to happen there, but we have to be realistic and adapt to what the market will bear and the type of housing people are seeking. These types of buildin~s seein to be wo~°king in other communities. She suggested that the Developer talk to the resideilts of the C~ndo building and ~et their support of this p1-oject prior to any hearings that will be held. She, too, was coneerned about getting people to pay l~i~h rents when the sale price~ of the condos have fallen and are qliite low in comparison. Boar~nan said they wolild consider changing the design to a four-story building if they could gain support for the pr~ject. It would inean decreasing the units from approximately 120 uiuts/building to 100/building. If the City Couneil doesn't want rental buildings, they will walk away and ptirsue projects in otller eities. Fehst stated that according to the Fire Depai-tment, the biggest problems they face in regards to rental propei•ty is ~~ith the single ~amily hoi~es that are rented, not the ~xrell run and mai~aged larger conlplexes. Boarmail agreed, and said you need building with 80-100 units to make a management con7pany viable, which helps keep the buildings in good repair. He said residents tend to be attraeted to on-site management that pr~vide safety, good policing, and established rules for the occupants Clark said this project would pr~ovide a product that we don't ctiirrently have in Columbia Heights. Since tlle Board seenled interested in the plan, staff will meet with Gassen and Boarman a~1d establish an estimated time line, set up tours of some similar projects, and discuss options. He told Board l~lembers there are two things that would i-equire action. 1) the Developnlent Agreement would have to be amended. 2) the construction documents would have to go throligh the approval pl•ocess by the City Commissions and the City Council. Econon~ic Development ~luthority Mii~utes Page 5 Septe~nber 22, 2009 PI20POSED PURCHASE OF 4235 WASHINGTON ST Cla~~k explained that as part o1~~~ the Scattel°ed Site TIF District, the City is purchasing blighted properties in the foreclc~sure market using funds from the existing C8 TIF District. As part of this project, The City has the opportunity to pLirchase the pi-operty located at 4235 Washington St for $39,000, plus closing and demolition costs. The subject property is on a 5,160 sq. ft. lot witl~ a single-family home that~ is 490 sq. ft. that was built in 1923. The house was minimally ~naintained and all the copper l~as been strippecl froi~~ ttle holise. The neigllbors actually brought this property to staff's attention because of the transient ownership of the property due to the size of the prim~ry structure. Staff negotiated for three days on this propei-ty and feels the price is appi°oximately $3,000-$4,000 more than we normally have beeu paying, bl~t ~lso recognizes that the deinolition costs should be less than other propel°ties due to the size of the structure. This house does meet all the guidelines set by the EDA for acquisition: 1) Acquisition price o£$55,000 or lcss 2) All homes pi~rchased will be demolisl~ed 3) Homes acquired should fall into one of the following categories-evidence of struchiral problems, hazardous conditions ineluding mold, functional obsolesceilce, c~r extensive physical deterioi-ation 4) Residual vacailt lots s11a11 meet existing zoning standards for pur~poses of rebiiilding 5) Recognition that extenuatiilg circumstances illay require deviation from the above policies. The house meets the~ functional obsolescerlce giiideline due to the 490 sf size of the structure. Nawroclci asked how mLich it will cost to demolish the structure siilce there are three buildings on the site. Clark said they estimate the demolition costs to b~ a~proximately $6,000. Motic~n by Diehm, seconded by Szurek, to waive the Reading of Resollition 2009-27 approving the acquisition of 4235 ~Uashingtoil St, there being ample capies available to the public. All ayes. MOTION PASSED. Motion by Diehln, seconded by Szu~•ek, to adopt Resoltrtion 2009-27 a~proving the acquisition of 4235 ~7Vashington St and furtherinore, to authorize the EDA President and EDA Executive Director to enter into an agreement for the same. All ayes. MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2009-27 R~SOLUTION AUTHORIZING EXECUTION OF A PURCHASF ACREEMENT FOR C~RTAIN REAL PKOP~RTY LOCATEll AT 4235 WASHINGTON STREET NORTHEAST IN THE CITY AND ASSIGNMENT TNEREOF TO THE COLUMBIA H~IGHTS ~~~NORrIIC DEVELC3PMEN~' AUT~-IQRI'I'Y Section 1. Recitals. 1.0 L Tl~e Col~imbia Hei~hts Economic Development Authority (the "Autl~ority") adniinisters the Downtown CBD Redevelopment Project (the "Project") witlli~~ the City, which was established under Minnesota. Statutes, Sections 469.OO1 fo 469.047 (the "~-IRA ~1et"). 1.02. The Authority has undertaken a progcam to acquire homes in t}~e Project in order to address foreclosure problems ai~d remediate and prevent the e~n~ergence of blight. Economic Developmcnt Authority Minutes Page 6 September 22, 2009 1.03 City stafF have negoti~ted a Real ~;sta~te Purcl~~ase Agreement with the Fannie Mae (tl~e "Sellec") dat~d as of September 21, 2009 ii~cluding al( eelated addenda and disc(osures thei-eto (collectively, the "Purc(~ase Agceement"), for real propel-ty located at 4235 Washin~ton Street Northeast a~1d legally describecl as follows: Columbia Heights Annex to Minneapolis, Anoka County, Minnesota, North 10 feet c~f Lot 23, a~~d all of Lot 24, Block 31, Columbia Heights Am1ex (the "Property"), which Purct~ase Agreement is contingent upon approval by the Economic Development Authority. 1.04. The Purchase Agreeme~~t has been prepared and submitted to tt~is Autl~o~°ity a»d is o~1 tile with the City Manager and/or the Executive Director of the EDA. Sectio~~ 2. Approval a»d Assi n~g nent. 2.01. The Purchase Agreement for the Property is hereby approved, and the execlition of the Purchase Agreement by tl~e EDA is hercby ratitied. Pursuant to the Purchase ~greem~nt, the EDA will puccl~ase t11e Property for $39,000. City staff ~nd officials are aufhorized and directed to take all such othel° aetions to complete the plirchase of the Property, including witl~out limitatio~l exec~~tion ofi all doeun~ents and agree~nents related to such transactior~. 2.02. Co~1ti~lgent upon approval of the Authority, t(1e City hereby assig~~s its iT~terests in the P~irchase Agi•eement to the Authol°ity. City staff a~~d officials are authorized and directed to take all such other actions to complete tl~e assignme~lt of the City's ii~terests in the Purchase Agreement to tl~ie Authorit~y, i~lcluding without limit~tio~~ execuYion of any doc~inlents a~~d agreements necess~ry to effectuate such assign~nent. Passed t11is 22nd day of Septeml~er 2009 Offered by: Diehm Second by: Szurel< Roll Call: All ayes ATTEST: Shelley Ha~ison, Seccetary ADMINSTRATIVE REPORTS- 47t" and Central Avenue Update- Preside~~t Gary L. Feterson Clark explained we have to go back to the Met Coullcil for a 3`~ extension for the Grant to constrLict the parking ramp as part of the coinmercial developinent of this site. In February we were told we wouldn't be granted another extension. However, when staff spoke with our Met Council represelltative, he said 90% of the projects that were grailted funds have stalled. IIe said he would push for an extension with the stipulation that work must coinmence in 2010 and be complete by 2011 in order to receive the grant. If not done, the money would not be paid. Based on that, staff will go before the CDC of the Met Council to fonllally ask for the extension. Staff will also contact Aldi's and see if they will give a commitment to the project. The Developer told Clark he can obtain the financing if he has Aldi's and can fill the retail space, which he claims is 50% committed at this tim~. Clark stated that the bank has hired an Appraiser to provide them with information regarding this project, so movement is being made. Econolnic Developnlent Authority Minutes Page 7 September 22, 2009 37tn and Central Ave- There is nothing new to report on this. October 27, 2009 EDA Meeting- It was decided not to cancel the meeting at this tim~;. If nothing comes in, it will be cancelled at a later date. However the HRA meetillg will still be held that night at Parkview Villa at 7 pm. OTHER BUSINESS As discussed above, the next re~ular HRA/EDA meeting is scheduled for Tuesday, October 2'7th, 2009 at 7 prn. The meeting was adjourned at 8:30 pm Respeetfiilly submitted, Shelley Hanson Secretary EDA RESO~UTION 2009-28 RESOI.UTION OF THE CO~UMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR SEPTEMBER AND OCTOBER 2009 AND PAYMENT OF BII.LS FOR THE MONTH OF SEPTEMBER AND OCTOBER 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 biils and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the months of September and October 2009 and the list of bills for the months of September and October 2009 are attached hereto and made a part of this resolution; and WHEREAS, the EDA has examined the financial statement and the list of bills and finds them ta be acceptable as to both form and accuracy. NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the list of bills as presented in writing are approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this 24th day of November 2009. MOTION BY: SECONDED BY: AYES: NAYS: President Attest by: Shelley Hanson, Recording Secretary COLUMBIA HEIUHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: November 24, 2009 AGENDA SECTION: Business Items ORIGINATINU EXECUTIVE N0:4 DEPARTMENT: EDA DIRECTOR APPROVAL ITE1V1: Make Heights Your Home ~3Y: Sheila Cartney I~Y: DATE: November 18, 2009 BACKGROUND: In Apri12009, the EDA approved MaKC HQ1~ItiS YOIIC HOIII@ down payment assistaiice pr~graln, using 2009 Fiscal Year Anoka Coitnty Levy funds. This progra~m provides 3.5% down payment assistance foi• tl~e purchase of foreclosed h~ines that are boLight with ~ 203K FHA loan (which guarantees rehabilitation for that prc~perty). To date one application has been accepted for this prograin, with a closing date of 1`~lovember 23, 2009. The applicant is purchasing the house located at 4739 Heights Drive for a purchase price of $133,414.25, which includes the rec~uired rehab work. Z'he down payment assistance is $4,G69.50. The estimated rehab on this pt~rchase is $28,000.00. When this progr~m was approved, 2009 was to be c~nsidered the test year, being the year is almost over staff wotild lilte to review the ~rograln with the EDA and get any further direction on keeping the piogram going or il7aking any modifications. The original objective of the prograrn was: - Dwn~r Occa~piec~ BuyeY -Increasing the r•at~ of homeowner•shi~ - Inc~°ecrsing the l~vel of,~ and zrz son~e cases, ~nsuring tlzat~i^o~ef~•tzes a~^e being pehczbilitc~ted instead of being pa~rchased "as is " - Lorrg term comrnztM~ent of ~new owne~^s to the co~~~nunity - Assistai~ce woz~ld be for foreclosure properties only; horneownership coitinseling wvuld be reguir•ed for pczrticipants Staff has had discussions with local realtors and a representative frozn the North Metro Realtor's ~ssociation about the lack of use of this program, especially in light of the fact that other communities have had successfiil programs. Some of the feedback suggested that Columbia Heights has a lot of foreclosures that aren't on the market yet, investors are purchasing the lower eild houses, the prograin should be opened up to all property not jlist foreclosures and should be open to other financing not just 203K FHA. There is strong encouragement to keep this program going especially with the tax credits being extended. StafF suggests extending this program into 2010 with tlle followin~ modifications: 1) Allow other siinilar financing to FHA 203K (that requires rehab) 2) Yropei-ty does not need to be in fc~reclosul-e RECOMMENDATION: Staif recommends extending Make Heights Your Home into 2010 with two modifications (1) Allow other simil~r financing to FI~~A 203K and (2} Remove requirement of prc~perty needing to be in foreclosure status. Staff is seeking any further dii°ection on this program. I2ECOMM~Nll~D MOTION: MOTION: Move to approve extension of M1ke flel~hlS YOtIP BOIl1C program to the end of 2010 with tiwo modifications (l) Allow other similar financing to FHA 203K nlortgage (rehab required) and (2) remove prcvic~us rcquircmcnt of propcrty being iti fc~reclosure status. ~tt~chments: A ril 24, 2UUy ~;llA report EDA ACTION: COLUMBI~ HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting o£ March 24, 2009 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE N0:4 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: I~o~sil~g Probram Discussion - Anoka BY: Sheila Cartney BY: Cotiinty Levy DATE: March 12, 2009 BACKGROUND: At t~he February 24, 2009 ED~ meeting, the Cominission directed staff to further investigate a city driven and funded housing program that would be available for individuals to purchases and/or rehabilitate fareclosed property. As discussed at the last meeting, the objective ofthe program would be: ^ Owner occupied buyers ^Increasing the rate of home owiler sales ^Inereasing the Ievel of, and in some cases, ensuring that properties are being rehabilita~ed instead of being purchased "as is" ^ Long term eommitn~ent of new o~vners to the commuility ^Assistance would be for fareclosL~re properties only; homeownersl~ip counseling would be required for participants. Based on this past discussion and maintaining the objectives listed above, staff is proposing a program similar to what Brc~ol<lyn Cent~;r is administel-ing through GMHC (attached}. Broaklyn Center is tising special approved TIF money, fi•om a past project to fund their pragram. Two incentive programs are being ~~fered: 1) a gr~nt of 3.5% of the aeqtiisition c~st (purchase pi-ice plus rehab costs) iip to ~7,000 to be used fo1° down payment with an FHA 203K Purchase/Rehab Loan (information attached) or ot~her approved purchase/rehab 1oa11s. 2) A$10,000 no-interest deferred loail that is for~ivable at the end of five years if the borrower resides in the home during that time. This loan lnay be lised for down payment, closing costs or home repairs when used in eoi~jlinct~ion with any prime "A" fixed-rate first inortgage loan program. The property must be a single-family detached dwelling or townhome and must be in a foreclosed status, which is registered as a vacant property by the City of Brooklyn Center. Homeownership education is required. Staff recornillends combinin~ the programs described above, albeit with some modifications to the 1i1z7its and other collditions, by providing a down payment assistance program for purchase of foreclosed IZOmes usillg a FHA 203K Loan. The highlights of the program are as follows ^ Lero percent interest-deferred loan of 3.5% of the acquisition cost (purchase price plus rehab costs) ~ip to $6,000 ^ Loan is forgiven if borrower lives in property for 10 years ^ Loan is repaid at a prorated amount depending on the number of years they live in tl~e house (if not the full 10 years) For exanlple 10% forgiveness per year. ^ No income limit ^ Must be used in conjunetion with a FHA 203K loan Li171it fuilding to the foliowing census tracts: 0514001, 0513052, 05143042, 0514004, and 0513022 While staff agrees this program should be for foreclosed single-family properties, staff has recornmellded lirniting this prc~gram to certain census tracts that have been detined as highest needs ileighborhoods by Anoka Co~inty for distribution of Neighborhood Stabilization Funds. It is staff's opinion that by doing t~his thcre would be a greater impact on the foreclosure issues within the City. The census tracts are listed above which are based on the lligh percentage of foreclc~sures (see attaehed map). With EDA direction and approval staff proposes to use 2009 Anoka County Levy funds one-year pilot pi°ograin, which can be revisited at a later date. The progran~ could be administei-ed by the Conununity Development Departmcnt or dcpending on a tinancial review, by Greater Metropolitan Housin~; ~arporation (GMHC). RECOMMENDATION: Staff reeoinmellds the F.,D~ approve a one-year pilot program for down payment assistance for foreclosed hc~mes that are pLirchased with a 203K loan. RECOMMENDED M~TION: Move ta approve a ane-year pilot pragram for down payment assistance for foreclosed homes purchased with a 203K loan, as outlined in thc staff report; fiulded by the 2009 Anolca County Levy. Atiachmcnts: Brookl m Center's ro rai~n information_ 203K aro rarn infonnation. Ma of foreclosures, census Uact ma . EDA ACTION: COLIJMBIA H~IGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA} Meeting o£ November 24, 2009 AGENDA SECTION: Business Items OR1GINf1TING EXECUTIVE NO:S DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Mady's Bowling Site Discttssion BY: Scot~t Clark BY: DATE: November 15, 2009 BACKGROUND: The subject site has been a redevelopment target for the City for many years but various impediments have always arisen that prechide the site from being redevei~ped. The c~irrent st~f~ was not illvolved in the last full ~°edevelopment ne~otiations but based on file information, an Lulworkable impasse occurred betweell the owners and the City based on price. The owners held an appraisal fhat valued the property at a price that was approximately 65% higher than a City initiated appraisal, and no compromise position could be reached. Over the past three years, two different private developers have approached the prc~perty owners but no deal was struck. It is staff's understanding ihat chai~ges may be occurring with the property owners tihat may allow the City (EDA) to negotiate for a true marlcet value pl~rchase and as slich, staff is asking the EDA to discuss their willingness and desire to secure this property. Stafi'recognizes that due to market conditions, this site will realistically not be ready fc~r developmeilt until late 2011 or il~to 2012, but the policy question for the ~DA is how critical is the site for redevelop~lent, atld in tur11, does the City want to ec~ntrol this through a purchase? Staff wc~uld ask that if any Commissioner meinber desires any specific infonnation on this site, prior to the meeting, please call so we can obtain the same ~For the ineeting. RECOMMENDATION: Staff seelcs clirection as to proceeding Attacl~ments: Ma ot'sub~ect site EDA ACTION: Project Site Acreage - GOULD AVE - 3959 I --- - - - 950 3951 J I ~. ~ Burger King ~ W 3939 3940 W _ G. W (1.09 Acres} > _ - Q J Mady's Bowling L.ounge /~ Q ~ ~ 3919 / ~ _~ Z i -- W (2.37 Acres} V 3901 37TH AVE TOTAL: 3.46 Acres Location Map N WYQ~E d S COLUMBIA H~IGHTS ECONOMIC DEVELOPMENI~ AUTHORITY (EDA} Meeting of: November 24, 2009 AGFNDA SECTION; Business Items ORIGINATING EX~CUTIVE N0:6 DEPARTM~NT: ~DA DIRECTOR APPROVAL ITEM: Acq~iisition of 4648 Polk Street - Resolution BY: Sheila Cart»ey BY: 2009-29 DATE: Navember 19, 2009 SACKGROUND: ln May of this year the City and EDA rnoditied the Tax Incre~Y~ent Plan for the Kmart/Central Ave~l~~ie Tax Increrneiit Fit~ancing District to incltide 55 parcels of tihe "Sheffield Neighborhood", wl~ich have been identifiied as a renovation and renewal area. "I't1e key element of the Plan is the use of tanobligated tax incremei~~t fi-om the ariginal district (eondo~ninium projcct nol~th of 47r~') as a revenue source for redevelopmei~t in the Sheffield neigl~borhood a~~d in tui°n, capit~alizecl revenue stream through 1 bond sale. Tl~e pla~~ provides for a wicle ra~lge of i•edevelop~nent work ihat is inclucling, l~ut not~ limited to, acquisition, demolition, rehabilitatiou, utility and street work etc. Additio»ally the City was awa~°ded a CDBG grant in the amo~int of $170,000 for de~r-olition of properties located i~7 the Sheffield nEighborhood. To d~te the City has pucchased 4 parcels within the Sheftield neighborhoocl a~1d 11ave demolisl~ed all buildiilgs associated with tlie parcels. 1-1 addition to making a physical envii°onmental eha»ge to tl~is neighborhood t11e Police Departmel~t continues to have success with hc~lding landlords and residents in the ~rea accountable and will conti~~ue these efforts. As pa~rt of the project described at~c~ve stafF is in negotiations to p~irchase a four-plex in tl~e Sheftield neigtiborhood located at 4648 Polk Street for a maxir~lum p~~rchase price $ I 99,000 plus closing eosts. The listing agent has preseiited our c~ffer of $185,000 (appraised value) and is waiting ~ reply fi•om the bank. Due to the fact this is likely the last EDn meeting of tl~e year staff sLiggests apprc~ving this p~irchase for up to $199,900 so that we do not ]ose this purchase dlie to our process. The subject !ot is 7,680 sq~-are feet with an existing faur-plex that was built in 1961. ~I'his properry laas been idet~tified by tl~e Police Department as a problern property in the past. Tl1is properry has been co~i~~letely ab~ndo~~ed; tl~e t~ei~ants left all their belongings a~~d trashecl the lulits. All the windows on tl~e lower level are bcoken ~nd have been boardeci up; overall the windows and frames need to be replaced (the fra~ning around the windows ~re rotted o~rtside and moldy i»side). All new electrical service is needed. RECOMMENDATION: StafF is continuin~ to negotiate t~l~e parchase of this property a~1d recommends the EDA apprc~ve this p~ircl~ase up to $199,900. RECOMMENDED MOTION: MOTION: Move to waive the reading of Resoli~tion 2009-29, there ~eing ample copies availabl~ to the public. MOTION: Move to adopt Resolution 2009-29, approving the a~cquisitioi~ of property located at 46~8 Yolk Street Northeast; furthermore to authorize the Executive Director to ei~tec into an agreement for the same. Attachinents: Resolution 2009-Zy, Memo irom Poiice l:hiei EDA ACTION: COLUMBIA HEIC~HTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2009-29 IZESOLUTION AUTHORIZING EXECUTION OF A PURCHASE AGREEMENT FOR CERTAIN REAL PROPERTY LOCATED AT 4648 POLK STREET NORT]-IEAST BE IT RESOLVED BY TFIE BOARD OF COMMISSIONERS OF THE COLUMBIA HEIGHTS LCONOMIC DEVELOPMENT AUTI-IORITY (THE "AUTHORITY") AS F'OLLOWS: Seetion 1. Recitals. 1.O1. The Authoi°ity and City ~f Cc~lutnbia Heights ("City") have established the K-Mal°t/Central Avenue Tax Increment Financing District (the "TTF District") within the Central Blisiness Distriet Redevelopment Project (tl~e "Project"), and 17ave adopted a Tax Increment i~i~~anciilg plan ("TIF Pla~1"} for the puipose of tina~~cii~g certain improvements witllin the Project. 1.02. Tlle Autl~ority has undertaken a program to acc~uire homes in ttie project in order to address blighting issues a~~d reduce density a»d provide future redevelopment opportwlities. 1.03. The Al~tl~ority or City rn~y i~~cur cel~tain costs related to the TIF District or Project, whicl~ costs may be financed on a temporary hasis ~Froi~r~ available Autl~c>rity c~r City fi-nds. 1.04. The City, using available T1F District funds, intends to acquire certai~i pi°operty in the City located at 4648 Po]k Street (t~he "Property") within the Pr~ject, all or a portion of whieh Property the Authority or City may use to furthe~° redevelc~pment within the Project. 1.05. City staff I~a~ve negotiated a Real Estate Purchase Agreeme»t with GMAC Mortgage (the "`Seller") dated Novernber 19, 2009, includin~ all related addenda and disclosures thereto (Collective~ly, the "Purchase Agr-eement"), for real property located at 464$ Polk Street Northeast and legalty described as follows: tl~e S'/2 of Lc~t 2 ancl all of Lot 3, Block 2, Sheffields 2°`~ Subdivision (the "`property"), which Purchase Agreement is contingent upon approval c~f the Authority. 1.06. Tl~e 1'lu-chase AgreerY~ent l~as been prepared and submitted to the Authority and is on file witl~ ihe Executive Dii-ector. Section 2. Appl°oval aud Assi ng ment 2.01. The Purchase Agreemei~t for the Properky is hereby ~pproved, and tl~e execution of the Purchase ~lgreement by the Authority is hereby ratified. Purstiant to the P~u~cl~ase Agreement, tl~e Authority will purchase the Proper-ty for up to $199,900. At~tho-•ity staff and officials are authorized and directed to take all such other actioils to complete the purchase of the Property, i~lel~iding without li~nitation executio~~ of all documents and agreements related to such transactic7~~. Passed this 24`~' day of Nove~~~~ber 2009. ATTEST: Presidei~t - Gary Peterson Secretary - Shelley Hanson Page 1 of 1 Scott, As a follow-up to our conversation on Monday, I would like to thank you for your continued efforts to look for re-development opportunities in the area of 46th/Polk and 46th/Tyler streets. We have tried to keep up the pressure from our standpoint with holding landlords and residents in the area accountable and have had some good success, but equally as important is trying to change the physical environment. The fact that you are purchasing some of the properties in that area at bargain rates with the idea that we will be able to redevelap is going to help us to sustain the progress. As we discussed on Monday, both 4648 Polk and 4600 Polk seem as though they may be good opportunities for the city. By continuing to purchase some of the properties on Polk and Tyler, and combing that with some community building and landlord accountability measures, I think we can realistically expect to see continued progress in that neighborhood. Thanks for all of the good work you are doing up there, I really appreciate the partnership. As we discussed on Monday let me know if there is anything the police department can do to assist you in your efforts. Scott Nadeau Chief of Police Ciry of Columbia Heights Police Department 825 41st Ave N.E. Columbia Heights, MN 554Z1 (763)706-8105 lile://C:ADocuments and Settin~s\C'CH-User\Local Settings\Temp\XPgrpwise\4B05424Acc1~~w10016C3... 1 1/l 9/2009