HomeMy WebLinkAboutEDA MIN 06-22-10ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE REGULAR MEETING
JUNE 22, 2010
The meeting was called to order at 7:00 pm by President -Gary Peterson.
Members Present: Bruce Nawrocki, Tammera Diehm, Gary Peterson, Gerry Herringer, Bruce
Kelzenberg, Marlaine Szurek, and Bobby Williams (arrived at 7:10 pm).
Staff Present: Walt Fehst, Scott Clark, Sheila Cartney, and Shelley Hanson.
2. PLEDGE OF ALLEGIANCE - RECITED
3. ECONOMIC DEVELOPMENT SUMMIT
Clark explained that as a prelude to the goals and strategy meeting that will take place later
this summer, he invited a few Developers to attend this meeting to address two questions.
1) Their perspective on the Columbia Heights Market and how to promote the community, &
2) Perspectives on market possibilities for the Mady's site.
Clark stated he had given the Developers a list of potential redevelopment sites that included:
L Mady's site (including the Burger King site) - -39 and Central -3.89 acres
2. Root Property -40 and University -2.58 acres
3. Huset Park Phase III -37 and University (east side) -6.22 acres
4. 51 Court (including Crosstown Eatery property) -3.58 acres
5. Central Value Mall (Rainbow Foods Center) -4300 Central -10.15 acres
6. 37 and Central - -.66 acres
7. Jackson and 40 Ave - -.37 acres
8. Wagamon Bros property -37 and University (west side) -1.92 acres
Clark then introduced the four developers invited to participate in this discussion and gave
brief backgrounds on each one:
1. Chris Barnes and Ross Stitely were present from Dominium Corporation. They work
mainly with larger, upscale rental housing such as the St. Anthony development.
2. Frank Dunbar was present from Dunbar Development. He works mainly with projects
that incorporate Sr. Housing, Libraries, City Halls, Student housing, or a combination
of them.
3. Collin Barr was present from Ryan Companies. He deals mainly with
commercial /retail development or small light industrial development.
4. Bruce Carlson - (formerly United Properties) was invited, but was unable to attend.
Clark asked them what they saw as the strengths and weaknesses of Columbia Heights and
what options they view as being successful for our city.
a) Chris Barnes said access is our best asset and we should promote that aspect in
all future development. He sees the biggest disadvantage is that the City has no
draw to keep people here such as shopping or entertainment venues.
b) Collin Barr said he is half developer and half builder who sees our city as
having aged housing with little options to play or shop here. In order to draw
corporate employers to this area, the city needs to land some bigger sites to add
shopping and entertainment opportunities.
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c) Frank Dunbar talked about the demographics of the baby boomers and the
younger generation now entering the work force, and how their housing choices
differ. He said the younger generation is looking to more contemporary
housing that meets their needs and active lifestyles, and offers amenities they
tend to use. The traditional housing the baby boomers sought is not as
desirable to the younger generation. He said 70% of people in their 20's live in
rental housing. Ideally, he thinks we need to provide our senior population
with convenient, rental buildings with lots of activities so they will move out of
the homes that have become aged and outdated. Seniors tend to stay close to
where they have lived for a long time, if the right housing is provided as an
option. Then we need to replace that aged housing with more contemporary,
upscale buildings so we attract younger people who have disposable income.
Diehm asked the developers to give their perspective on what comes first, the replacement of
the housing or the addition of retail and entertainment space. How do we make ourselves
more attractive?
a) Chris Barnes said the Council needs to put a plan together of what type of
development they want in the City. He said that St Anthony's plan took
more than three years to put together. Once in place, it was launched all
at once and included both housing and retail /office development. Chris
acknowledged that Columbia Heights doesn't have a large enough site to
do something on that scale.
b) Collin Barr agreed the city needs to envision what they want to do and
make it happen over time.
Peterson asked what type of housing Frank would recommend. Frank said he thinks the Coop
and Condo market has run its course. Seniors tend to want quality rental now instead. It
gives them better liquidity options for health care changes. It also makes it easier for families
who have to deal with aging parents. He told the members to quit looking in the rear view
mirror. The elected officials need to look at what the population wants, and what the trends
are. Peterson stated that building more rental units here is a hard sell due to past experience,
but he also acknowledged the City needs to change its image.
Herringer asked if the developers could state in a dozen or so words what comes to mind
when they think of Columbia Heights.
a) Collin labeled it a "Tweener ". It's one you drive through and that it's
easily forgettable. He said that developers are fairly neutral on the city
and would be willing to re- develop a site if an opportunity arose.
b) Chris said he wasn't real familiar with Columbia Heights, but liked the
proximity to other places. He didn't think it has a real identity of its own
and viewed it as a neutral place to do development.
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c) Frank has built in communities surrounding Columbia Heights, but never
here. He said the biggest problem Columbia Heights has is there aren't
enough residents with disposable income. He went on to say that
Columbia Heights has very dated multi family units that draw residents
that have limited discretionary incomes. It is an economically challenged
community, and therefore, businesses do not want to locate there. He
said the city needs to become more contemporary and construct upscale,
higher priced rental. This will bring in people who have higher incomes
and then restaurants and retail will most likely follow. He
acknowledged the City may have to fill an economic gap to make a
project work which will take some risk, but will be necessary to break the
cycle.
Clark stated that members had doubts about the long term sustainability of the proposed rental
project that was recently turned down for the Grand Central site. He asked the developers if
they thought the price point of $1.30 - $1.50 /sf could be sustained on that site. Chris from
Dominium said the St Anthony site has a price point of $1.30 /sf, but it has other things to
offer in the area. He didn't think the Grand Central project could sustain a higher price point
without other area re- development to go along with the project.
Nawrocki said he is aware that Columbia Heights has one of the lowest household income
levels in the Twin Cities. He asked how Columbia Heights could increase business and retail
with that demographic level? Colin responded that that is the problem and why developers
won't seek out development here. And it makes it more difficult because our re- development
sites are not that large.
Diehm said what she was hearing from the developers was that Columbia Heights needs to
draw residents with higher income levels and in order to do that, the City needs to put a plan
into effect and build better housing and /or rental complexes that offer upscale finishing and
amenities.
Frank agreed, there is a need to get present owners into newer senior housing and tear down
and redevelop the housing stock. He said we should get rid of the dated homes, as they have
nothing to offer the younger generation with the most disposable income. Columbia Heights
needs to draw people in the right demographic income bracket to bring in the rest. He stated
the trend is that young people want to live close to the city, but in nice housing, with
entertainment options close by. Frank said it may be a slow process to achieve that goal.
Clark said NE Minneapolis has been re- vitalizing in some areas, but it seems to stop south of
us. He sees part of the problem being that the commercial property along Central Avenue is
located on such small sites. He then asked the developers what they envisioned as a potential
project for the Mady's site at 39 and Central Ave. Frank responded that he thought a project
that made a statement to the community such as building a city hall facility and /or library
facility along with some senior housing and small retail would probably work there. He said
they are in the process of constructing something very similar in Norwood /Young America.
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JUNE 22, 2010
Nawrocki asked the developers if the city obtained a site and did the clean -up on it, if it makes
it any more attractive to a developer. Collin said a little, but not much without the addition of
newer housing or an active senior housing complex close by.
Clark told the developers about the possible street car project that Minneapolis is pursuing.
He asked if something like that would be an economic tool the City could use to promote
other development. Colin said he has read mixed reviews on transit lines and how they
impact local business along the lines. He said studies show it generally has little market
impact or on increasing property values nearby. Clark said he looked at it more as an
opportunity to change the image of the city by focusing on something different that the city
has to offer. The Heights Theater was brought up as an example of something that is unique
to Columbia Heights that draws people from other communities to ours. The developers said
that is the type of thing that is needed to promote Columbia Heights, but we need to build and
expand on other things to keep people coming into the community to spend their money.
Frank said if the City decides that is the heart of the community, then the surrounding area
should be targeted for re- development.
Clark asked the developers to name other cities they feel have re- defined themselves.
a) Frank said St Louis Park. He said it was tired and dated also, but they pushed
the envelope to make changes. They tore down a lot of properties and
completely re- built. It was a huge project to re- create their downtown area.
He said most of the re- development has been focused around Excelsior Blvd
and Grand, along 36 Street, and along Hwy 7. He said they realized if you
want to raise disposable income of residents, and bring in retail to meet their
needs, then you have to do something drastic. St. Louis Park set aside some
the their Planning & Zoning codes in order to achieve their larger goal.
Cartney said that the St. Louis Park project also raised the income levels of
their residents by providing places to shop and play close to home that resulted
in them only having 50 foreclosures in the last few years compared to
Columbia Heights' 740 foreclosures.
b) Chris said St Anthony is another city that has re- defined itself with the re-
development of the old Apache Plaza site. He said that project offers a mix of
income levels.
Clark said he feels a lot of the businesses in Columbia Heights are marginal and cater to a
limited number of the population. He doesn't feel these businesses are an asset to the
community, nor are they going in the right direction as far as improving the city's image. He
asked if there is a point when that can't be reversed. Frank said it can always be changed, but
city officials need to focus on a plan to change things and stick to it. He said the biggest thing
that has to change is attitude. City officials will need to concentrate on their plan and have a
positive attitude that things throughout the city can change.
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JUNE 22, 2010
Nawrocki asked them what they thought it would take to put together a viable project for the
commercial piece on 47 and Central Avenue since no one has been able to do that yet.
Colin said that piece blends into the rest of the development happening there. He said this site
is removed from the Central downtown area. He thinks that some type of Active Sr. Housing
or upscale rental could work in conjunction with a retail anchor or small industrial business
such as a Fed Ex location. With the freeway access so nearby, it would be a good place for
that type of business.
Chris wouldn't comment on development of the commercial piece since he deals mainly in
residential /rental complexes.
Fehst said changes in the law regarding eminent domain have hurt cities ability to increase or
replace industrial businesses. The developers agreed this has had a negative impact on cities.
The developers were asked if they would consider Aldi's as a quality retail component for the
city. Colin and Frank both said yes, especially if mixed with a Sr. Housing complex nearby.
Peterson thanked the developers for coming and felt the information received was
encouraging and helpful.
Diehm said she feels the City needs to look towards the future and to make changes that will
attract residents with higher incomes to spur further development.
4. CONSENT AGENDA
Approve the Minutes of May 25, 2010.
2. Approve the Financial Report and Payment of Bills for May 2010 per Resolution 2010 -09
Nawrocki questioned some of the payments:
Linders- Refund for CUP
Randy Yeary- Refund on Site Plan
Sargent payment- tuition reimbursement
He stated that these payments have already been approved by the City Council, so he
questioned why the EDA needs to approve them again. Clark told him it has to be
approved by both bodies because the payment of bills aren't separated and are made from
different sources of revenue. Some are paid from revenues generated from permit fees
collected and some are paid from EDA or HRA levies, which would require the
appropriate Board's approval.
Fehst suggested Nawrocki ask the Auditor if the bills needed to be approved twice.
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JUNE 22, 2010
Motion by Diehm, seconded by Kelzenberg, to waive the Reading of Resolution 2010 -09,
there being ample copies available to the public. All ayes. MOTIONPASSED.
Motion by Diehm, seconded by Kelzenberg, to approve the minutes and to adopt
Resolution 2010 -09, approving Financial Report and payment of bills for May 2010. All
ayes. MOTIONPASSED.
EDA RESOLUTION 2010 -09
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
(EDA) APPROVING THE FINANCIAL STATEMENT FOR MAY 2010 AND PAYMENT OF BILLS
FOR THE MONTH OF MAY 2010.
WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota
Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and
disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the
EDA's credits and assets and its outstanding liabilities; and
WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and
if correct, to approve them by resolution and enter the resolution in its records; and
WHEREAS, the financial statement for the month of May 2010 has been reviewed by the EDA Commission;
and
WHEREAS, the EDA has examined the financial statement and finds them to be acceptable as to both form
and accuracy; and
WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including
but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and
similar documentation; and
WHEREAS, financials statements are held by the City's Finance Department in a method outlined by the
State of Minnesota's Records Retention Schedule,
NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights
Economic Development Authority that it has examined the referenced financial statements including the check
history, 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 check
history as presented in writing is approved for payment out of proper funds; and
BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia
Heights Economic Development Authority.
Passed this 22nd day of June, 2010.
MOTION BY: Diehm
SECONDED BY: Kelzenberg
AYES: All ayes
EDA MINUTES
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JUNE 22, 2010
BUSINESS ITEMS
5. GMHC -2 Amendment to Redevelopment contract with GHMC for redevelopment of
3805 2nd St- Resolution 2010 -10
On November 27, 2007 the EDA entered into an agreement with Greater Metropolitan Housing
Corporation (GMHC) for the redevelopment of the residential property located at 3805 2nd Street. At
that time the property contained one single - family house on a double lot. As part of the agreement
GMHC was to demolish the house and redevelop the site with two new single - family homes, with
financial assistance from the EDA. The EDA agreed to provide $86,647 in funding to make this
project feasible for GMHC. The $86,647 was obligated through the Anoka County HRA levy.
To date the existing house has been demolished and no further activity has taken place on the site.
GMHC requested a contract extension in 2009 that was approved by the EDA, changing the
commencement date to May 1, 2010 and completion date to December 31, 2010. GMHC is
requesting another one -year extension.
In addition to the extension GMHC is requesting an additional amendment to the minimum
improvements (Schedule B). GMHC would like to add an alternative house plan to the minimum
improvements.
The table provides a comparison of the major differences
Approved
Alternate Proposed
Two-story
Split-ent
3bd 2.5bath
3 BR, 2 bath
Detached 2 -car garage
Attached 2 -car garage
Large front porch
Small front porch
Master Suite with walk in closet and master bath
No master suite
Formal Dining Room
Dining kitchen area in one space
Allowing for the alternative plan provides more options for GMHC houses. The Split -entry home is
cheaper to build but is 50 Square feet larger than the two - story.
Staff recommends the EDA direct staff to amend the agreement to extend the completion dates by
one year and to allow the alternate plan.
stions from members:
Nawrocki asked Bill Buelow from GMHC why they hadn't started yet. He said with the downturn in
the market, they are cautious about building a house on spec and therefore, are looking to save some
additional money to construct the home. The original plan cost more to construct than the proposed
split level plan. Bill said the new style home would have a finished basement, so it would actually
have more square feet. He explained that all the mechanical, fixtures and finishing would be the
same. Nawrocki then asked how much we've paid them. Cartney told him nothing yet, but we are
committed to pay them $86,647 for two houses to be constructed from Anoka HRA Levy money.
EDA MINUTES
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JUNE 22, 2010
Herringer asked if GMHC planned to build two houses of the same style on the two lots. Bill said
that was the plan, but that he would make modifications to the exteriors so they would be slightly
different. Bill said one nice feature with the proposed split entry design is that they will have
attached garages, rather than detached garages that were proposed with the two story design.
The general consensus of the members was they would like to see two different designs. They asked
him if he would be willing to construct two different styled homes. He said that he would be open to
that. He told the Board that his main goal is to get the extension in place. If he gets approval to build
the first house with the Split Style, he will bring back a design for the second one before they
construct that one.
Nawrocki asked if this is upgrading our housing stock. He isn't impressed with the design of this
house, nor the two they built on Jefferson. Peterson pointed out these are larger houses with attached
garages, and are as large as can be built on lots this sized. They will sell for approximately $200,000
versus the average price of $100,000 that houses in that area are selling for now.
Resident, Jeff Diehm, stated the houses that were built on Jefferson St. were a big improvement to
that block which is what the developers were telling us we must do.
Bill Buelow told members they have been rehabbing some houses in Minneapolis and making them
more contemporary. Diehm asked if a tour could be arranged to view what changes they have made
to the properties. Cartney will schedule something with Bill and let the members know.
Motion by Diehm, seconded by Kelzenberg, to waive the reading of the revised Resolution 2010 -10, there
being an ample amount of copies available to the public. All Ayes. MOTIONPASSED.
Motion by Dtehm, seconded by Szurek, to Adopt Resolution 2010 -10, Second Amendment to Contract for
Private Redevelopment by and between the Columbia Heights Economic Development Authority, Columbia
Heights, Minnesota and the Greater Metropolitan Housing Corporation dated November 27, 2007, to change
commencement and completion dates by one year and to allow one of the houses being built to be a split -entry
design as an alternative plan. All ayes. MOTIONPASSED.
EDA Resolution 2010 -10
Second Amendment to "Contract for Private Redevelopment by and Between the Columbia Heights
Economic Development Authority, Columbia Heights, Minnesota and Greater Metropolitan Housing
Corporation" dated November 27, 2007
WHEREAS, the Columbia Heights Economic Development Authority (EDA) entered into an agreement
entitled, "Contract for Private Redevelopment by and Between the Columbia Heights Economic Development
Authority, Columbia Heights, Minnesota and Greater Metropolitan Housing Corporation, dated as of
November 27, 2010, as amended by a First Amendment dated January 27, 2009 (the Agreement), and
EDA MINUTES
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JUNE 22, 2010
WHEREAS, the Agreement contract outlined the terms and conditions for redevelopment of property
addressed as 3805 Second Street, and
WHEREAS, the end result of the redevelopment is the construction and sale of two single family homes by
Greater Metropolitan Housing Corporation, and
WHEREAS, Section 4.3 (a) "Completion of Construction" requires a commencement date of May 1, 2010
and a construction completion date of December 31, 2010,
WHEREAS, due to economic conditions causing declining sales prices the redevelopment project has been
delayed, and
WHEREAS, the parties have determined to modify the Agreement in order to accommodate a change in the
construction schedule and certain other details.
NOW THEREFORE BE IT RESOLVED, by the board of commissioners of the Columbia Heights
Economic Development Authority as follows:
1. The EDA approves a Second Amendment to the Agreement in substantially the form on file in City
Hall.
2. The EDA's president and executive director are authorized and directed to execute the Second
Amendment, with changes that do not alter the substance of the transaction; provided that execution of the
document by those officials will be conclusive evidence of their approval.
Passed this
day of 1 2010.
Offered by:
Diehm
Second by:
Szurek
Roll Call:
All ayes
President, Gary Peterson
Executive Director, Walter R. Fehst
EDA MINUTES
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JUNE 22, 2010
SECOND AMENDMENT TO
CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT, made on or as of the day of , 2010, 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 "), and GREATER
METROPOLITAN HOUSING CORPORATION ( "GHMC "), a Minnesota non - profit corporation (the
"Redeveloper ").
WHEREAS, the Authority and Redeveloper entered into that certain Contract for Private
Redevelopment dated as of November 27, 2007, as amended by a First Amendment thereto dated January 27,
2009 (the "Contract ") providing for the redevelopment of the property described in the Contract as the
Redevelopment Property; and
WHEREAS, in light of changing economic circumstance, the parties have determined to modify
certain aspects of the redevelopment described in the Contract.
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(a) of the Contract is amended to change the required commencement of
construction from May 12, 2010 to May 1, 2011; and to change the required completion date from December
31, 2010 to December 31, 2011.
2. Schedule B of the Contract is amended to include an alternative housing style as part of
Schedule B attached to the prior Contract. The alternative housing style may be used for one lot, not both.
3. The Contract remains in full force and effect and is not modified except as expressly provided
herein.
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name
and behalf and its seal to be hereunto duly affixed and the Redeveloper has caused this Agreement to be duly
executed in its name and behalf on or as of the date first above written.
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
By
Its President
By
Its Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this day of , 2007, by
and , 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
EDA MINUTES
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JUNE 22, 2010
GREATER METROPOLITAN HOUSING
CORPORATION
By
Its
STATE OF MINNESOTA
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of 2007 by
, the of the Greater Metropolitan Housing Corporation, a
Minnesota non - profit corporation, on behalf of the corporation.
Notary Public
SCHEDULE B
Revised Concept Materials for Redevelopment
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JUNE 22, 2010
6. ADMINISTRATIVE REPORT
Clark informed members that GMHC is applying for CRV funds that will be used to renovate
homes. They are applying for $500,000 in funding which they estimate will help rehab 12
homes in our city. The name of the program is Columbia Heights Foreclosure Initiative. The
City does not have to match funds, nor is a Resolution needed. GMHC only needs a letter of
support to accompany their application. They plan on concentrating their efforts from 40
Avenue to 46 Avenue—Central to Main Street.
Clark asked members if they wanted to hold their goal setting session in July or August. He
told members the next scheduled meeting date is July 27 for both HRA and EDA, however
there are no business items for those agendas. Members thought we should still hold the HRA
and EDA meetings on July 27 at Parkview Villa and schedule the goal setting session for the
August meeting.
Nawrocki noted that Diehm suggested we hold the goal setting retreat, but disputes that the
Board ever directed staff to go ahead and set one up. He said the Board never directed staff to
contact developers either for the session held at tonight's meeting, that it was staff's idea to do
this. Nawrocki stated goals were established several years ago and the goals on that list
haven't been completed yet, so why add new ones. He thinks it is a waste of time and money
to do this. He listened to the developers and they are pushing additional rental housing. He
doesn't think the City needs more rental property or a Caribou Coffee, and since we can't
afford to do anything for a while, why waste our time.
Members disagreed with him and said the rental projects the developers were talking about is
different from what we now have available in the city. We need to offer upscale housing in
order to draw younger people in higher income brackets to our City. It is the only way we
will turn the city around. Peterson stated that the city needs to establish a plan and this goal
setting session is a good time to set one in place. Nawrocki disagreed and said we don't need
a plan and we probably can't accomplish much anyways.
Clark stated the EDA body is different from the Council. The EDA's job is to be the City's
business arm, with the goal of community betterment. The Board needs to ask itself where
the city is and where it wants to be. Is the Board satisfied with the businesses it is attracting?
We need to focus on the good things that we have and develop a plan on how to keep moving
in the direction we wish to go. We need to manage the change. Szurek agreed that we need a
plan and as the economy improves, then we start to implement the plan. Fehst said we can't
keep doing everything the same. The developers said the same thing. They admitted they
aren't doing things the same way they did five years ago either. Dynamics of the economy,
changing demographics, energy consumption, lifestyle trends, etc. all impact the types of
development projects that will be successful and draw people to a community.
Diehm questioned Nawrocki as to why he thought it was a waste of time and money to listen
to opinions from developers who are successful and who know the market trends. She
reminded Nawrocki that no one, except staff, has been paid thus far in this process of re-
focusing on our goals and establishing a plan. Nawrocki commented that too much staff time
is being spent on this and that we are over staffed if time is being spent in this manner.
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JUNE 22, 2010
Fehst stated that Nawrocki accuses everyone that the Council doesn't know what is happening
and what staff is doing. He said the City needs to look to the future and it is staff's job to lead
the way and present ideas and plans to the Council and EDA Board so informed decisions can
be made that better the community.
The discussion then turned to some of the new businesses in town and how they affect the
image of our community. The recent raid that took place at Pyromaniacs was discussed.
Members were upset with the signage that had been displayed prior to their opening. Clark
explained that the Mayor and Police Chief were also concerned and that a letter was sent to
the owners prior to them opening telling them the City had a zero tolerance when it came to
promoting drug paraphernalia. They also had been warned prior to the raid being
implemented. Clark stated that citations had been issued and it will be up to the Courts to
decide if the materials seized are indeed drug related paraphernalia rather than allowed
tobacco related products. The difference between smoke shops and miscellaneous cigarette
sale licenses was also discussed. Many of the members felt allowing smoke shop licenses at
all was a mistake since they seem to be operating outside the intent of the Freedom to Breathe
Act. The Board was reminded that staff had suggested the Council define sampling or to at
least limit the area in which sampling could take place, but the Council elected not to and
decided to limit the number of shops that could operate in the city instead. The City does
have the right to make requirements stricter than what is laid out in the Freedom to Breathe
Act.
Members also discussed the issue that some of the new businesses have caused an increase of
cars parking in residential areas rather than using the overflow parking lots that should be
used instead. This issue may have to be referred to the Traffic Commission if complaints are
received.
7. OTHER BUSINESS
Clark explained the Commission would be moving into an Executive Session. He explained the legal
procedure that must be followed during this meeting to the members before adjourning to the session.
Move to Executive Session at 9:20 pm- To discuss negotiations to acquire Mady /Foss
property at 3919 -3927 Central Avenue with possible reference of 3901 Central Avenue.
The meeting was adjourned at 9:55 pm.
Respectfully submitted,
Shelley Hanson
Secretary