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HomeMy WebLinkAboutEDA MIN 06-06-11 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE SPECIAL MEETING OF JUNE 6, 2011 IN CONFERENCE ROOM 1 The meeting was called to order at 6:30 pm by President-Gary Peterson. Members Present: Bruce Nawrocki, Gary Peterson, Tammera Diehm, Gerry Herringer, and Marlaine Szurek. Donna Schmitt arrived at 7:00 pm after the Traffic Commission meeting. Members Absent: Bobby Williams Staff Present: Walt Fehst, Scott Clark, Sheila Cartney, and Shelley Hanson. 2. PLEDGE OF ALLEGIANCE- RECITED 3.CONSENT AGENDA 1.Approve the Minutes of May 2, 2011. 2.Approve the Financial Report and Payment of Bills for April 2011 per Resolution 2011-05 Questions from members: Nawrocki noted he would like to see the location of the meetings indicated in the minutes. Motion by Nawrocki, seconded by Szurek, to waive the Reading of Resolution 2011-05, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Nawrocki, seconded by Szurek, to approve the minutes and to adopt Resolution 2011-05, approving the Financial Report and payment of bills for April 2011. All ayes. MOTION PASSED. EDA RESOLUTION 2011-05 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR APRIL 2011 AND PAYMENT OF BILLS FOR THE MONTH OF APRIL 2011. 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 April 2011 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 EDA COMMISSION MINUTES PAGE 2 June 6, 2011 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 6th day of June, 2011. MOTION BY: Nawrocki SECONDED BY: Szurek AYES: All ayes BUSINESS ITEMS 4. BIG BOB’S FLOORING PARTNERSHIP FOR REHAB PROGRAMS Cartney explained that the Residential and Commercial Sales Representative from Big Bob’s Flooring has approached the city about partnering with them on a discount program they offer. Basically they would like us to offer a certificate/coupon to Big Bob’s flooring for people that use our Rehab incentive programs, and the certificate would offer some sort of a discount. While it is beneficial to our residents to receive discounts at various establishments it is a policy decision for the EDA to decide if they want to partner with a business outside of Columbia Heights. If we do partner with a business outside of Columbia Heights, where does the City draw the limit? There are several home improvement businesses surrounding our community. This is also a means of advertising for these companies. Staff seeks direction on partnering with home improvement businesses regarding the rehab incentive program. If the EDA would like to have said partnerships, staff recommends not limiting the partnerships to one business. Cartney told members that to date we have processed 10 Rebate applications, completed 7 rebate projects and processed three single family deferred loan applications. Staff has answered approximately 90 phone calls regarding these programs and have mailed out 60 applications. EDA Commission Minutes Page 3 May 2, 2011 Questions from members: Diehm asked if the certificates would only be available to those residents using the Rebate or Deferred Loan Program. If that is the case, she feels that is giving some residents something of value, and not others. Szurek had a concern that by giving out certificates/coupons from selected vendors that it looks like the City is giving a recommendation to use a particular company and that could cause problems if people are not satisfied with the product or service. She suggested giving out a list of various businesses in the area where they can go to obtain home improvement materials or to obtain bids. Nawrocki was also concerned about residents who don’t necessarily qualify for our programs, but still want to fix up their properties. He also felt that residents should be encouraged to shop around and get numerous bids for work they want done. The general consensus was not to participate in giving out certificates or coupons in conjunction with our programs. 5. OTHER BUSINESS A. There was a discussion about when to hold the July meeting. It was decided not to th hold one the week of July 4 since several members would not be available. If a meeting is needed in July it will be held the fourth Tuesday of July in conjunction with the HRA meeting. Nawrocki stated his preference that he feels all the EDA meetings should be held on the fourth Tuesdays as they originally were. Clark told members that issue will be re-evaluated in August. B. Clark reported that negotiations have started with Aeon since the Memorandum of Understanding was approved by the HRA. Staff is in the process of preparing letters to Federal, State, and County legislators to inform them of our desire to sell Parkview Villa to Aeon and to ask for their support in the process if the need should arise as we move forward to seek HUD approval. Nawrocki said he thought earlier comments about the process taking two years or more was too long. He would like to see a schedule prepared and followed. He said the first issue should be to get HUD’s approval so we don’t waste time in other areas if they refuse to allow it to happen. Clark said he believes the process could take up to 18 months or so, not 2-3 years, as stated by Nawrocki. He explained to members that Aeon and staff are working to put “all their ducks in a row” prior to meeting with HUD. HUD will require information in order to give their approval and that is what Aeon is working on now. This would involve securing financing from various funding sources, and implementing a plan, to show the HUD Officials that the process will work. EDA Commission Minutes Page 4 June 6, 2011 Szurek asked if any other entities had ever gone through the process of dissolving a PHA and selling to a private entity. Clark responded that Bloomington did it with a different type of housing, not a high rise building. He also thought that either Scott or Dakota County was successful in doing a similar transaction. Clark again reminded members that it is a complex process and diplomacy must be used. We need to build allies along the way so they support our efforts and can intercede on our behalf if needed. Nawrocki agreed that we need to get legislators on our side to help us through the process. He is concerned about the funds currently committed to Parkview and if the City will be able to protect this funding and any equity that could potentially come to the City through the sale process. C. Clark told members that staff had received a written offer from the current owner of 500 Summit St for the City to purchase the property. Clark explained that the City had tried to purchase this property for $30,000 a couple of years ago when it became available. We lost the bid to the current owner for $32,000. He now is asking the City to purchase it for $43,200. The EDA decided not to purchase this particular property at this time. th D. Clark updated the members on the Root property located at 40 and University. He said that a DEED Grant of $19,000 was available to do a Phase 1, Phase 2, and to prepare a WRAP Plan for the site. In order to secure the grant, the owners had to put up $6,000 for their share in order for us to get the grant. Neither the owners, nor the bank will do so. Clark told members there is already over $100,000 in abatement expenses against the property. Staff thinks the property will go into tax forfeiture, not foreclosure. The bank does not want the property. It is already 4 years into tax delinquency now. Nawrocki said the property is in hazardous shape, and he thinks something should be done to make it safer. Clark said the City would most likely have to pay for anything done on the site since the owners are letting everything go through the abatement process and have no intention of paying. E. Nawrocki asked why a list of properties was put in the green sheet. Cartney said the list was meant to update the members on the properties that have been purchased by Anoka County. th F. Members asked about the status of the property at 47 and Central. Clark told them Jeff Sargent had contacted the owner of the property to give him 30 days notice that the Development Agreement is in default and that we are taking the Letter of Credit. Herringer asked about the silt fence along Central Avenue and whether the company who did the pipe bursting project had left it there. Clark will check with Public Works regarding this matter to see if it can be removed. The Board thought it was visually unappealing. EDA Commission Minutes Page 5 June 6, 2011 G. Nawrocki asked about the abatement process for properties around Hart Lake. Clark said this matter will be discussed by the City Council at the work session as it is not an EDA matter. H. Nawrocki said that Annual Reports and Budgets are coming due and he will be asking for details on several funds. He wants staff to prepare detailed information on TIF funds, and any Anoka County Levy Money expenditures and balances. th The meeting was then adjourned to an executive session to discuss the possible sale of 828 40 Avenue lot. The meeting and Executive Session were adjourned at 7:53 pm. Respectfully submitted, Shelley Hanson Secretary