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HomeMy WebLinkAboutEDA MIN 08-24-10ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE REGULAR MEETING AUGUST 24, 2010 The meeting was called to order at 7:00 pm by President -Gary Peterson. Members Present: Bruce Nawrocki, Gary Peterson, Gerry Herringer, Bruce Kelzenberg, Tammera Diehm, Marlaine Szurek, and Bobby Williams Staff Present: Walt Fehst, Scott Clark, Sheila Cartney, and Shelley Hanson. 2. PLEDGE OF ALLEGIANCE- RECITED 3. CONSENT AGENDA Approve the Minutes of July 27, 2010. 2. Approve the Financial Report and Payment of Bills for July 2010 per Resolution ?010 -1 Walt noted a correction to the July 27 minutes of the Executive Session. Nawrocki asked what the bills to Gene's Sewer & Water and to A.M.E. were for. Cartney said the payment to Gene's was for the water and sewer cuts and new stub -ins for 4600, 4608, and 4648 Polk St. The payment to All Metro Excavation was for demolishing these same three properties. Clark said these payments were made by the EDA, but are being reimbursed from CDBG funds. Nawrocki asked if this project was bid out. Cartney said it was and that the City Council awarded the bid to this company a couple months ago. Nawrocki requested a copy of the bid results. Cartney said she would get the information to him on the demo bids, but the contract information for using Gene's Sewer and Water was bid out and handled by Public Works. Motion by Szurek, seconded by Williams, to waive the Reading of Resolution 2010 -12, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Szurek, seconded by Diehm, to approve the minutes and to adopt Resolution 2010 -12, approving the Financial Report and payment of bills for July 2010. All ayes. MOTION PASSED. EDA RESOLUTION 2010 -12 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR JULY 2010 AND PAYMENT OF BILLS FOR THE MONTH OF JULY 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 EDA COMMISSION MINUTES PAGE AUGUST 24, 2010 WHEREAS, the financial statement for the month of July 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 24th day of August, 2010. MOTION BY: Szurek SECONDED BY: Diehm AYES: All ayes BUSINESS ITEMS 3. GOALS AND OBJECTIVES WORKSHOP Clark reminded members that at the April 27, 2010 EDA meeting there was a consensus of the Commissioners to hold a goal setting session. As there was a limited agenda for this meeting, this date was selected. He explained that the overall goal of this meeting is threefold: 1) To establish (or reestablish) broad goals that serve not only as a framework for future actions, but also as a set of values for the Council/EDA. 2) To use the retreat discussion as a format for staff to develop a specific work plan for future activities. 3) To have a candid discussion about the purpose of the EDA, and the role of redevelopment and City involvement, as a catalyst for private reinvestment. EDA MINUTES PAGE 3 AUGUST 24, 2010 As a starting point, staff provided the following: 1. Results from an opinion survey that was conducted two ways a) The first group was internal and consisted of the Council, EDA, Planning Commission members and City staff that had significant day to day contact with the community b) An equal number of surveys were completed during the Police Picnic nights. The surveys are not intended to be a scientific sampling but should serve as some preliminary baseline regarding opinions. 2. Based on these results, staff attempted to coalesce the survey results into five broad based goals, coupled with a long list of possible discussion items. Clark stated it is hoped that this would establish a consensus, (yes or no) on each "preliminary goal statement" as a priority, and from discussions, a work plan would be brought back to the EDA as a mechanism to ensure that staff correctly interpreted the dialogue. 3. Ground rules were reviewed to assist having a meaningful meeting. 4. Additional information including a single- family rental map and foreclosure map was handed out at the meeting. It was noted there are 462 active foreclosures somewhere in the process, and another 300 that have gone through the process and have been re -sold. Clark explained these statistics only cover the single family and doubles in the city. This means that approximately 13% of homes in that category have been affected by foreclosure. Clark said this creates stress on the entire neighborhood because it has drastically affected the property values throughout the community. He stated the average price point for homes in the area between Central and University, 40 to 49 is now $107,000- $108,000. Szurek said she was concerned about the large number of single - family homes being bought and turned into rental property. She said once rented, the owners are less apt to reinvest more money in upgrading the property. Nawrocki said it indicates a lot of the residents are in financial trouble. He went on to say that burdening them with higher taxes means they have less money to put back into their homes. Staff then proceeded with going through the five statements that were established to prompt the discussion. EDA MINUTES PAGE 4 AUGUST 24, 2010 GOAL OBJECTIVES /PRIORITIES: 1 } "I am satisfied with the types of businesses Columbia Heights attracts to Central Ave." 6 members disagreed with this statement. Diehm thought it would be important to get quality retail along Central Avenue. She stated that one of the issues the developers discussed with the Board in June was that we need to attract households with more disposable income in order to draw in quality retail, or do we try to get the retail in order to draw the people. "Either way, how do we get that to happen ?" Williams said he would like to see an attractive strip mall with major tenants at 39 and Central and to get the development going at 37 and Central. Peterson would like to get a retail area developed also. He thought stores where someone could walk from one to another would be nice -- similar to what St Anthony or Maple Grove have done, but on a smaller scale. Since we have some available sites along Central Avenue, this would be a good time to pursue this type of redevelopment. Peterson also would like to see 40 °i Avenue beautified a bit. He suggested working with Anoka County to reduce the traffic lanes and put a median in that would hold trees, shrubs, and nice lighting. He also suggested making the signage more aesthetically pleasing. Nawrocki stated the traffic signs along Central Avenue don't bother him, but the sandwich boards do. He thinks it makes our corridors look tacky. He went on to say that the market will drive any commercial redevelopment that may or may not take place. Developers know where they can sell their product and succeed. He told the members that a local business owner recently told him that his taxes had doubled over the last 8 years. Again, he made the argument that businesses can't re- invest in their businesses, or properties, if their taxes are too high. Peterson said budget discussions are coming up. If members want to cut the budget, services will have to be cut. He told members to let him know what services they are willing to eliminate, but fiom his discussion with residents, they want to continue the services currently being provided. Diehm said some of the businesses along Central could use a face -lift. She suggested contacting the owner of the Mall at 40 and Central and see if he would be willing to spruce up the mall, which may draw more attractive businesses to the area. She thought the EDA should consider some financial assistance to businesses that want to do this as one of the future goals. She used the Mounds View Mall on Highway 10 as an example of an older retail strip mall that was able to revitalize itself. EDA MINUTES PAGE 5 AUGUST 24, 2010 Clark was asked whether he had any recent conversations with representatives from Aldi's. The members still felt that would be a good fit in this area. Clark said he has made at least five overtures (the last one as recent as five days ago) to Aldi's to meet with their developers to encourage or help them find a site in Columbia Heights. He said they have been unresponsive to his communications. He knows from past discussions with Khoratty and Bruce Carlson that Aldi's has very specific criteria in their decision- making. They prefer to own the site and to have a large parking lot for their own use. He said those were the primary issues that prevented them from committing to the 47` and Central Ave site. Kelzenberg asked when Clark had last talked to Dave Klober regarding the residential part of that site. Clark stated he is basically an invisible owner and has not been proactive in getting the site developed. They last spoke regarding the legal documents that were processed in order for the pipe bursting project to proceed. Kelzenberg would like staff to check on ownership of the site and to see if the owner has any plans to develop it, or if he would possibly be willing to donate it for a City Hall or Library site. Clark asked if the Board is comfortable to let that site sit as is for 15 -20 years if it takes that long for the market to rebound enough to construct condo or townhouse units as originally planned? Williams and Szurek both stated they think the luxury rental project would have been good since this is becoming a more popular housing choice, especially with young professionals and older people who are vacating their homes. Clark asked if they are interested in looking at other ideas for that site if it can be arranged? The consensus was to wait until the commercial /retail space is developed, then it will most likely develop itself. Herringer went on record to thank staff for obtaining 30+ surveys from residents throughout the community at the Police sponsored picnics. He appreciated being able to consider those responses as well. Herringer stated he thinks it is crucial to get the front, commercial piece of that site developed first. He also believes Aldi's or something similar, like Trader Joe's, are the only stores that would succeed there. Members reminded Herringer that Trader Joe's wouldn't be interested in having a store in our City since we have Municipal Liquor and they would also want to sell beer and wine. Clark asked him if he thought Aldi's would be enough to drive the rest of the site? Although the members would like to see Aldi's along with one or two other small retail outlets, they did all agree that the retail must be developed first to make anything else work up there, even if it is just a stand alone Aldi's store. Dielun encouraged staff to continue to try to open a line of communication with them. Clark said he is doing that directly and through RJM Developers who are also trying to coordinate the development of that site. Nawrocki made some general comments regarding the history of Columbia Heights and that it has been a work in progress for many years. He thinks Columbia Heights continues to improve and that code enforcement is an important piece in keeping the community strong. He feels the Fire Dept employees doing code inspections has been a huge help toward this effort. EDA MINUTES Page 6 August 24, 2010 Walt stated that the survey responses indicated that most of the respondents also feel code enforcement is important. Diehm thought it was interesting that staff and City Council thought properties are not being kept up very well, but the residents felt the majority were doing a good job. Szurek stated that outside storage has become a problem. Clark asked members if staff should take another look at the property maintenance code and how inspections are done? Should we do City sweeps more often, or perhaps shorten the timeframes to correct the matter? This prompted a discussion regarding the merits of holding a spring clean up day to encourage residents to get rid of unwanted items and to participate in a community wide event, even though our garbage service will take most items on a regular basis. Nawrocki stated someone called him and volunteered to help others with cleanup /haul away of items if someone had a truck. Members should contact him for more information if they know someone in need of assistance. Clark told members that he is attending a meeting on September 3rd comprised of local Business Owners who are trying to establish a group similar to what used to be the Local Chamber of Commerce. He thinks this could be a positive move for the community. Clark said he would keep members apprised of any information that is obtained from the meeting. Clark then asked if members would be interested in promoting a Citizen's Academy? He explained that 16 -20 people are picked from the community and are brought in to meet with City Staff and learn what the various departments do and what services they provide. They are told the basics of how City Government runs, and how policies, laws, state statutes, etc impact the process. This would be a way of attracting people to serve on Boards and Connnissions and would get some of the younger, newer residents of the community involved. He explained that other communities are using this tool, and that it seems to be very popular and relatively inexpensive to establish. It helps the residents, and those they come in contact with, to feel more connected. Herringer commented on Item #8- People's perception of the City. All of the groups rated this negatively. Peterson said we need to build our image from the inside out. A lot of good changes have happened in the last 10 years and we need to find a way to promote that. The Major Goals for this Question are: *Redevelop available sites along Central Avenue with quality commercial projects *Do more marketing on available land to developers (including putting a list and the contacts on the City's Website). *Encourage or help existing businesses to update their property *Keep trying to communicate with Aldi's *Look at more attractive signage along Central Avenue -and possibly look at our sign ordinance requirements. *Beautification of corridor streets (40 Avenue and Central Avenue) *Continue /improve code enforcement of properties. EDA MINUTES Page 7 August 24, 2010 2) "The City should spend time and resources to be more aggressive in developing housing programs to ensure that proper levels of reinvestment are occurring in the City's neighborhood and create specific neighborhood groups to enhance the level of involvement by residents in the city." 6 members agreed with these statements. The ideas discussed for this were: 1. There was a consensus that staff should continue to go after grants and funding. 2. The members all felt that the Community Gardens was a huge success. Staff will prepare a policy so that the program can be continued. Staff suggested it be in place this fall so the gardens can be organized earlier next year. Nawrocki stated that the Garden Club, which has more than 70 clubs from across the metro area, came to look at the one at 40` and Jackson. He said they have already given 400 pounds of food to SACA and expect at least 100 pounds more in the next few weeks. Herringer suggested using that as a positive marketing spin- contact the media and recognize the parties who were involved. Diehm suggested looking at resources to remodel existing homes and encourage people to stay. She used the remodeling book that was put out about 10 years ago for remodeling Cape Cod or Expansion homes as an example. 3) "City staff should drive redevelopment and marketing efforts to ensure a healthy development ". 6 members agreed with this statement. Clark asked if the EDA was still willing to look at TIF to develop sites. The consensus was they are open to the concept. Diehm said it would have to be decided on a case by case basis. Nawrocki felt the Board would have to look carefully at how those monies would be used to be most successful for the community as a whole. Walt said he thinks the "pay as you go" Tax Increment Financing is most favorable. EDA Minutes Page 8 August 24, 2010 4) "The City should spend time and resources to reevaluate the rental property program and related ordinances ". 5 members agreed and 2 members somewhat disagreed with this statement. Nawrocki said we should do a better job with what we have. Clark stated in the past rental inspections on the interior had been changed to four year intervals. In January they will be going back to a two year cycle for the interior inspections. Exterior inspections will continue on an annual basis. Clark said he thinks the inspection process can be improved on and that staff will come back with ideas for the Council to consider that would include more inspections, better quality inspections, and more consistency in the inspections. Other code enforcement issues were discussed earlier in the meeting. 5) "Potentially increasing City Expenditures for property code enforcement is critical in maintaining the City's community health ". 5 members agreed and 2 somewhat disagreed with this. Everyone agreed that code enforcement is important to the general health of our city, as discussed earlier in the meeting. Clark asked if there were any other items critical to the members that weren't included in these five statements, or discussed already. The members summarized the most important items to them were: 1. Improving the image of Columbia Heights using some recent positive changes (i.e. Pedestrian Bridge, Community Gardens) 2. Upkeep and maintenance of housing stock/code enforcement 3. Work to re -face existing commercial properties and to fill vacant commercial sites 4. Draw new commercial that is of higher quality retail, restaurants, etc. This also will help change our image. Staff will put together a list of goals and a basic work plan that the Board can review for approval. These goals will give direction to staff and keep the Board focused on how best to accomplish them. 5. ADMINISTRATIVE REPORT None The meeting was adjourned at 8:55 pm Respectfully submitted, Shelley Hanson Secretary