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HomeMy WebLinkAboutEDA MIN 08-01-11 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE SPECIAL MEETING OF AUGUST 1, 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, Bobby Williams, Gerry Herringer, Marlaine Szurek. and Donna Schmitt. Staff Present: Walt Fehst, Scott Clark, Sheila Cartney, and Shelley Hanson. 2. PLEDGE OF ALLEGIANCE- RECITED 3.CONSENT AGENDA 1.Approve the Minutes of June 6, 2011 for the Special Meeting and Executive Session. 2.Approve the Financial Report and Payment of Bills for May and June 2011 per Resolution 2011-06 Questions from members: There were no questions/comments on the Minutes or Financial Reports. Motion by Willliams, seconded by Szurek, to waive the Reading of Resolution 2011-06, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Szurek, to approve the minutes and to adopt Resolution 2011-06, approving the Financial Report and payment of bills for May and June 2011. All ayes. MOTION PASSED. EDA RESOLUTION 2011-06 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR MAY AND JUNE 2011 AND PAYMENT OF BILLS FOR THE MONTH OF MAY AND JUNE 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 May and June 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 August 1, 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 1st day of August, 2011. MOTION BY: Williams SECONDED BY: Szurek AYES: All ayes BUSINESS ITEMS 4. RESOLUTION 2011-07 HRA LEVY BUDGET and RESOLUTION 2011-08 EDA LEVY BUDGET Clark explained that the 2012 budget for the Community Development Department was sent to the members in the packets. Although some of the Department’s budget (fund 201) is not controlled by the EDA, traditionally the EDA reviews and acts on this budget as a whole. The actual EDA portion of the budget is fund 204 and the attached resolutions generate a recommendation to the City Council for levying both an EDA and a HRA levy. The Department’s operating budget is straightforward due to the size of the department and no on-going capital and/or rolling stock requirements. This year’s budget highlights are as follows: 1) The 2012 HRA levy (called a special benefits levy), which is driven by a State formula using City’s market value, has been reduced by $22,031 from $240,374 to $218,343. The EDA maximizes the HRA levy as a budget revenue, and the aforementioned reduction is due to market value reductions. The EDA levy has been maintained at prior year levels. 2) The reduction in the HRA levy, coupled with the EDA levy and Parkview administration revenue, balances fund 204 expenditures. As in past years, a small transfer to fund 420, Capital Improvement Development, is proposed. EDA Commission Minutes Page 3 August 1, 2011 3) Fund 201 (Protective Inspections which includes building inspections and planning) has a proposed negative $71,541 difference between revenue and expenditures. The difference will be made up by existing Fund 201 fund balance. The aforementioned loss is a projected worst case scenario and one or two unanticipated projects in 2012 could substantially change these figures. Due to the inconsistency of building inspection revenue, revenue seldom matches expenditures. Fund 201 fund balances are used to offset years in which there are losses and the fund is replenished in years when revenues exceeds expenditures. 4) Staff has cut back a number of line item expenses, especially in the area of professional and expert services. If additional funds are needed, staff will come back to the EDA for expenditures out of Fund 420, Capital Improvement Development. 5) The only major expenditure increase is for computer replacement for all members of the Department (5). The total expenditure (Funds 201 and 204 combined) of $6,125 is consistent with the recommendations of the City of Columbia Heights’ IS Division. Clark explained the projections could change if Phase 3 of the Huset Park Development moves forward. He stated that BNC is in the process of doing a market study since taking over the property from Shafer Richardson. Questions by Members: Nawrocki said he thinks it is premature to act on this department’s budget since the Council hasn’t seen the rest of the Department Budgets. He also expressed his belief that the Council needs to look closely at the budget, just as the State and Federal governments will be doing. The cuts they will be making could have a large impact on future funds to local governments as well, and we need to plan accordingly. Clark responded that these budgets still go to the City Council for final approval with the rest of the City budget, even if these Resolutions are approved tonight. Fehst told members that the City will receive the LGA amount that was planned on for 2011 and 2012, and explained what changes will be made to the Market Value Homestead Credit next year. Fehst also explained that there are no levy limits, which enables the City to stick with the five year plan in place to reduce our dependence on LGA as part of our Revenue stream. He explained the City froze its budget for 2011 and is holding to a 1% overall increase for 2012 in order to accomplish this. Nawrocki stated that we have a large debt for the Liquor Stores and Public Safety Building that need to be paid off. He believes we need to cut the budget and change the levy amounts and not necessarily stick to the five year plan. Fehst explained that the City actually received an upgrade of two points in its credit rating due to the fact that we established the 4-5 year program to eliminate the need for LGA monies as a necessary component of our budget revenues. Nawrocki then questioned the Special Levy that Anoka County is collecting on our behalf. Clark stated that this is not budgeted since this is a capital fund, and tonight’s action is for the EDA’s operational budget. Nawrocki asked what the $37,000 amount was for in the Reimbursement account of the 204 fund. Clark stated that was the Administration Fee for Parkview Villa. EDA Commission Minutes Page 4 June 6, 2011 There was a discussion regarding the 201 Fund (Protective Inspections) and how differences between Revenues and Expenses are handled. Clark explained that the 201 Fund is separate from the General Fund. Some years we experience a surplus and some years we have a loss. To date, we have a surplus that should help meet the expenses for 2011 and 2012. This fund constantly fluctuates depending on the economy and construction activity which dictates the type of permits issued. Fehst stated that due to law changes the funds must be kept in the Building Inspection Fund and any surpluses cannot be transferred to the General Fund. Clark told members that Department Staff spends a great deal of time on counter assistance, answering questions on Zoning and Building Code issues. This customer service does not generate revenue, but is very important to ensure construction and remodeling is done according to the Codes in place. Nawrocki didn’t feel the department needed to spend money on five new computers. Clark said the IS Department worked up the figures for the replacement computers and they recommend replacing them as they are outdated. The computers now used are seven years old and generally do not work well. It wastes a lot of staff time waiting for the software to operate as it should. Nawrocki questioned the salary increase in the 204 Fund. Clark stated that there was an adjustment to increase the 204 fund and decrease the 201 fund to reflect a division of the License/Permit Clerk’s salary due to the fact that her duties now encompass work for both the EDA/Community Development Department and the Building Inspection Department. Nawrocki then asked if Jeff Sargent’s salary was also divided between Fire and Protective Inspections. Clark said it was not, but as direction had been given by the EDA to be vigilant on property inspections in order to be pro-active in maintaining neighborhoods, staff is doing its best to do just that. Clark also stated that Sargent spends a smaller portion of his time, and only on a seasonal basis, doing outside inspections. Schmitt questioned telephone expenses of Funds 201 and 204 and wondered why they had increased substantially. Clark said he would check on that and report back. He was given the figures from the IS Dept. Nawrocki stated he felt the cell phone policy for employees should be looked at. He doesn’t believe all employees need one. Clark stated that only the Building Inspector and Jeff Sargent have City cell phones since they are out in the field and must be reached from time to time. Everyone else in the Department uses a personal cell phone. Motion by Diehm, seconded by Schmitt, to waive the reading of Resolutions 2011-07 there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Diehm, seconded by Schmitt, to approve Resolution 2011-07, Resolution Authorizing the Levy of a Special Benefit Levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6 . Roll Call: Ayes- Williams, Herringer, Szurek, Schmitt, Diehm and Peterson. Nays-Nawrocki MOTION PASSED. EDA Commission Minutes Page 5 August 1, 2011 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2011-07 AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A BUDGET FOR FISCAL YEAR 2012 WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.1081 (“EDA Act”) the City of Columbia Heights (“City”) created the Columbia Heights Economic Development Authority (the "EDA"); and WHEREAS, pursuant to City Resolution 2001-62 and Ordinance No. 1442, the City Council granted to the EDA all powers and duties of a housing and redevelopment authority under the provisions of Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act"), except certain powers that are allocated to the Housing and Redevelopment Authority in and for the City of Columbia Heights (the “HRA”); and WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the EDA and HRA, together, to levy and collect a special benefit levy of up to .0185 percent of taxable market value in the City upon all taxable real property within the City; and WHEREAS, the EDA desires to levy a special benefit levy in the amount of .0185 percent of taxable market value in the City; and WHEREAS, the EDA understands that the HRA does not expect to levy a special benefit tax for fiscal year 2012; and WHEREAS, the EDA has before it for its consideration a copy of a budget for its operations for the fiscal year 2012 and the amount of the levy for collection in fiscal year 2012 shall be based on this budget. NOW, THEREFORE, Be It Resolved by the Board of Commissioners of the Columbia Heights Economic Development Authority: 1. The budget of $340,154 for the operations of the EDA presented for consideration by the Board of Commissioners of the EDA is hereby in all respects approved. Such budget includes the amount the EDA requests (by separate resolution) to be levied by the City under Minnesota Statutes, Section 469.107, together with the amount to be levied hereunder by the EDA under Minnesota Statutes, Section 469.033, subdivision 6. 2. Staff of the EDA are hereby authorized and directed to file the budget with the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6. 3. There is hereby levied, subject to the approval of the City Council of the City, a special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, in the amount equal to the lesser of a levy at a rate of .0185 percent of taxable market value in City, or $218,343 with respect to taxes payable in calendar year 2012. 4. Staff of the EDA are hereby authorized and directed to seek the approval by resolution of the City Council of the City of the levy of special benefit taxes in 2012 and to take such other actions as are necessary to levy and certify such levy. Motion by: Diehm Second by: Schmitt Motion passed this 26th day of July 2011 Attest by: Walter R. Fehst, Executive Director Gary L. Peterson, President EDA Commission Minutes Page 6 August 1, 2011 Motion by Diehm, seconded by Szurek, to waive the reading of Resolutions 2011-08 there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Diehm, to approve Resolution 2011-08, Approval of a Budget for Fiscal Year 2012. Roll Call: Ayes- Williams, Herringer, Szurek, Schmitt, Diehm and Peterson. Nays-Nawrocki MOTION PASSED. EDA RESOLUTION 2011-08 RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS (EDA) ADOPTING THE 2012 BUDGET AND SETTING THE EDA LEVY. BE IT RESOLVED By the Columbia Heights Economic Development Authority (EDA) of Columbia Heights, Minnesota as follows: WHEREAS, the Columbia Heights City Council established the Columbia Heights Economic Development Authority January 8, 1996 pursuant to Minnesota Statutes 469.090 to 469.1081; and WHEREAS, the City Council has given to the EDA the responsibility for all development and redevelopment projects and programs; and WHEREAS, the EDA is authorized under State Statutes, Section 469.107 to levy a tax on its area of operation for the purposes authorized under State Statues 469.090 to 469.1081, subject to consent by the City Council. NOW, THEREFORE BE IT RESOLVED BY THE EDA FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA THAT: 1. The EDA adopts and recommends to the City Council for approval a budget of $340,154 for year 2012. 2. The EDA adopts and recommends to the City Council for approval a levy of $84,811 for year 2012. The Executive Director is instructed to transmit a copy of this resolution to the City Manager and Finance Director/City Clerk of the City of Columbia Heights, Minnesota. st APPROVED THIS 1 DAY OF AUGUST 2011 MOTION BY: Williams SECONDED BY: Diehm Attest by: ___________________________ ____________________________ Walter R. Fehst, Executive Director Gary L. Peterson, President EDA Commission Minutes Page 7 August 1, 2011 5. RESOLUTION 2011-09 CALLING FOR A PUBLIC HEARING TO CREATE A SCATTERED SITE HOUSING DISTRICT At the April 28, 2009 EDA meeting, the commission directed staff to implement all the necessary processes to create a Scattered Site Housing District. This included the use of all remaining TIF District C8 funds (fund balance and revenue derived until the end of the District in 2010) as a revenue source and the immediate acquisition of properties that met policy guidelines established by the EDA. To date 14 properties have been purchased through the scattered site program, in addition the Plan’s initial proposal will include seven other lots owned by various parties. In order to create the district, the EDA’s first step is to request that the City Council call for a public hearing to modify the Downtown CBD Revitalization Plan for the CBD Redevelopment project and the Establishment of the City-Wide Scattered Site Housing TIF District. The EDA will have to approve the plan modification as well in September and should consider holding a special meeting in early September to review the plan (the schedule was included in the packet). As is the case with all of our TIF Districts Ehlers will prepare plans with the standard fee of $10,000. The source of funds will come from the district itself. In September we will discuss marketing and selling parameters for these lots, and have included the City of Crystal and Richfield’s programs for your information as to how other cities operate these types of programs. With a scattered site district the first buyer must meet certain income limits (100% area median income for one and two person and 115% of median area income for three or more persons), other than that there are not findings that need to be met or other restrictions. The EDA could establish more restrictions as part of the program. Questions from members: Nawrocki asked about the Scattered Site District we have in place. Clark said we don’t currently have a Scattered Site District. We previously had one that was dissolved about two years ago. Nawrocki wanted to know what impact this might have on tax revenue if established. Clark said this Resolution is to call for a Public Hearing, not to decide on the details of the Plan. As previously stated, Ehlers will prepare plans the Board can consider during the meetings and Public Hearing in September. Clark went on to explain there are currently about 20-25 housing sites that would make up this district, which would include properties purchased by Anoka County and GMHC as they meet the necessary requirements. Fehst said one plan to consider would be to use the increased tax revenue to cover the expenses we have incurred to purchase and demolish the sites and maybe to regenerate the fund so the City could continue purchasing old, run down homes that could be rebuilt to improve neighborhoods. He said we have purchased these single family homes at reduced rates, and once new homes are built, they will generate higher taxes than the previous ones. Nawrocki questioned how much was left in the A3/C8 District currently being used to purchase properties. Clark stated there is about $340,000 left which means we could possibly purchase six more homes. By establishing a new District, we can generate new revenue to replenish the fund. Nawrocki thought Ehlers fee of $10,000 to establish this District might be too high. He thought the City should go out for bids. Clark stated that there are only two companies who do this type of work and Ehlers is the more experienced of the two, and specializes in working on TIF District issues. Nawrocki asked what the median income was. Cartney stated it is between $80,000-$82,000 and that it is established by HUD taking into account the Metro average. EDA Commission Minutes Page 8 August 1, 2011 Schmitt asked what advantage it is to establishing a TIF District rather than selling the property outright. Clark explained it gives us a mechanism to fund future housing programs for a period of time (up to 25 years), by capturing a greater portion of the tax dollar. Otherwise, the money would go back to the General Fund at 40 cents on the dollar because we would lose some money to the County, School District, etc in the normal tax process. So to maximize our dollars to continue revitalizing neighborhoods in this way, we would want to establish the TIF District. This would make it possible to cover what has been expended, as well as replenish the fund. Otherwise, money would have to be appropriated in the General Fund if the City chose to continue purchasing properties and/or doing other type of housing programs. Motion by Williams , seconded by Szurek , to waive the reading of Resolution 2011-09, their being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams , seconded by Szurek , to approve Resolution 2011-09, a Resolution Requesting the City Council of the City of Columbia Heights call for a public hearing on the modification of the CBD redevelopment project and the establishment of the city-wide scattered site housing tax increment financing district (a scattered site housing district). Roll Call: Ayes- Williams, Herringer, Szurek, Diehm, and Peterson Nays-Nawrocki and Schmitt MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION 2011-09 RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF THE CBD REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF THE CITY-WIDE SCATTERED SITE HOUSING TAX INCREMENT FINANCING DISTRICT (A SCATTERED SITE HOUSING DISTRICT). BE IT RESOLVED, by the Board of Commissioners (the "Board") of the Columbia Heights Economic Development Authority, Minnesota (the "EDA") as follows: WHEREAS, the City Council (the "Council") of the City of Columbia Heights, Minnesota (the "City") established the CBD Redevelopment Project pursuant to Minnesota Statutes, Minnesota Statutes, Sections 469.174 to 469.1799, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and WHEREAS, the EDA is proposing the modification of the CBD Redevelopment Project and the establishment of the City-Wide Scattered Site Housing Tax Increment Financing District, pursuant to, and in accordance with, Minnesota Statutes, Sections 469.174 to 469.1799 and Sections 469.090 through 469.1082, inclusive, as amended; NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1. The EDA hereby requests that the Council call for a public hearing on September 26, 2011 to consider the proposed modification of the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project and the proposed adoption of the TIF Plan for the City-Wide Scattered Site Housing Tax Increment Financing District (collectively, the "Plans") and cause notice of said public hearing to be given as required by law. EDA Commission Minutes Page 9 August 1, 2011 2. The EDA directs the Executive Director to transmit copies of the Plans to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Plans are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. 3. The Executive Director of the EDA is hereby directed to submit a copy of the Plans to the Council for its approval. 4. The EDA directs the Executive Director to transmit the Plans to the county and the school district(s) in which the City-Wide Scattered Site Housing Tax Increment Financing District is located not later than August 26, 2011. 5. Staff and consultants are authorized and directed to take all steps necessary to prepare the Plan and related documents and to undertake other actions necessary to bring the Plan before the Council. Approved by the Board on August 1, 2011. 6. PURCHASE OF 3808 JOHNSON ST- As part of the scattered site program staff has made an offer to purchase property at 3808 Johnson Street for $20,000 plus closing costs. This property meets the following guidelines for acquisition that were approved by the EDA as part of the Scattered Site program: 1) An acquisition price point of $55,000 or less 2) All homes purchased will be demolished 3) Homes acquired should fall in one of the following categories: a. Evidence of structural failure b. Hazardous conditions including extensive mold c. Functional obsolescence (size of property, interior layout) d. Extensive physical deterioration 4) Residual vacant lots shall meet existing zoning standards for purposes of rebuilding 5) Recognition that extenuating circumstances may require deviation from the above policies The existing house is 456 square feet with one bedroom and there is a detached garage. The lot is 9,000 square feet. The house has been completed stripped down to the shell there is no plumbing, furnace, cupboards, fixtures, lighting etc. The Building Official has posted this property as vacant and abandoned and uninhabitable. Fannie Mae is selling this property and we have not heard a response to our offer. The property was listed at $16,500 and there are five parties bidding on this property. That is why staff offered $3,500 more than the listing price as this would be a good house to have demolished due to the small size and possible structural issues. As we have done in the past the EDA can approve this purchase with an up to amount (or $20,000) and if Fannie Mae comes back with a counter the limit is set and staff does not have to come back to the EDA for approval. land The Anoka County value for 2012 is $61,000. Staff recommends purchasing the property at 3808 Johnson Street for $20,000 as part of the Scattered Site program. Questions from members: Schmitt stated that as long as it is posted as an abandoned property it will have to go through an inspection process and meet minimum standards. She doesn’t think it makes sense to purchase it if someone is willing to do so and expend funds renovating the property. If we purchase for $20,000 and demolition expenses are approximately $18,000, the City has already expended at least $38,000 on the property. She felt the house could be renovated, even if it is only 456 square feet in size. EDA Commission Minutes Page 10 August 1, 2011 Others thought it made sense to purchase it due to the size and condition of the structure, which meets the intent of the program. They felt it could be replaced with a newer home with more square footage that would improve the neighborhood. Motion by Williams, seconded by Herringer to waive the reading of Resolution 2011-10, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Herringer to adopt resolution 2011-10, approving the acquisition of 3808 Johnson Street furthermore to authorize the Mayor and City Manager to enter into an agreement for the same. Ayes- Williams, Nawrocki, Herringer, Szurek, Diehm, and Peterson Nay-Schmitt MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION 2011-10 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE AGREEMENT FOR CERTAIN REAL PROPERTY LOCATED AT 3808 JOHNSON STREET NORTHEAST IN THE CITY AND ASSIGNMENT THEREOF TO THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority (the “Authority”) administers the Downtown CBD Redevelopment Project (the “Project”) within the City, which was established under Minnesota Statutes, Sections 469.001 to 469.047 (the “HRA Act”). 1.02. The Authority has undertaken a program to acquire homes in the Project in order to address foreclosure problems and remediate and prevent the emergence of blight. 1.03 City staff have negotiated a Real Estate Purchase Agreement with the Fannie Mae (the “Seller”) dated as of July 25, 2011 including all related addenda and disclosures thereto (collectively, the “Purchase Agreement”), for real property located at 3808 Johnson Street Northeast and legally described as follows: AUDITORS SUBDIVISION OF WALTONS SUNNY ACRES THIRD ALL OF S1/2 OF S 1/3 OF E1/2 OF BLK 15 AUD SUB OF WALTONS SUNNY ACRES 3RD-EX E 30 FT THEREOF TAKEN FOR JOHNSON ST NE--EX W 149.96 FT THEREOF. (the “Property”), which Purchase Agreement is contingent upon approval by the Economic Development Authority. 1.04. The Purchase Agreement has been prepared and submitted to this Authority and is on file with the City Manager, and/or the Executive Director of the EDA. Section 2. Approval and Assignment. 2.01. The Purchase Agreement for the Property is hereby approved, and the execution of the Purchase Agreement by the EDA is hereby ratified. Pursuant to the Purchase Agreement, the EDA will purchase the Property for $20,000. City staff and officials are authorized and directed to take all such other actions to complete the purchase of the Property, including without limitation execution of all documents and agreements related to such transaction. EDA Commission Minutes Page 11 August 1, 2011 2.02. Contingent upon approval of the Authority, the City hereby assigns its interests in the Purchase Agreement to the Authority. City staff and officials are authorized and directed to take all such other actions to complete the assignment of the City’s interests in the Purchase Agreement to the Authority, including without limitation execution of any documents and agreements necessary to effectuate such assignment. st Passed this 1 day of August Offered by: Williams Second by: Herringer Roll Call: Ayes-Williams, Nawrocki, Diehm, Herringer, Szurek, and Peterson Nay-Schmitt ATTEST: ____________________________________ President Gary L. Peterson __________________________________ Shelley Hanson, Secretary 7. PURCHASE 4133 2nd STREET- As part of the scattered site program staff has made an offer to purchase property at 4133 2nd Street for $22,500 plus closing costs. This property meets the following guidelines for acquisition that were approved by the EDA as part of the Scattered Site program: 1) An acquisition price point of $55,000 or less 2) All homes purchased will be demolished 3) Homes acquired should fall in one of the following categories: a. Evidence of structural failure b. Hazardous conditions including extensive mold c. Functional obsolescence (size of property, interior layout) d. Extensive physical deterioration 4) Residual vacant lots shall meet existing zoning standards for purposes of rebuilding 5) Recognition that extenuating circumstances may require deviation from the above policies This house has been structurally compromised and is unfit for human occupancy. The existing house is 875 square feet with two bedrooms and one bathroom and there is a detached garage that is in disrepair. The lot is 6,500 square feet. The listing has it listed as “sold as is in tough shape with strong, strong pet odor. Tear down condition. Value for lot. Make offer.” As part of the purchase staff had to agree to tear down the house and not occupy the house. The Building Official has posted this property as vacant and abandoned and uninhabitable. land The Anoka County value for 2012 is $54,000. Clark passed around pictures of the house so they could see the condition of the property on the interior. Staff recommends purchasing the property at 4133 2nd Street for $22,500 as part of the Scattered Site program. The general consensus was to purchase this property since it meets the intent of the ordinance. EDA Commission Minutes Page 12 August 1, 2011 Motion by Williams, seconded by Herringer to waive the reading of Resolution 2011-11, there being ample copies available to the public. All ayes. MOTION PASSED. nd Motion by Williams, seconded by Herringer, to adopt resolution 2011-11, approving the acquisition of 4133 2 Street furthermore to authorize the Mayor and City Manager to enter into an agreement for the same. All ayes. MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION 2011-11 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE AGREEMENT FOR CERTAIN REAL PROPERTY LOCATED AT 4133 2nd STREET NORTHEAST IN THE CITY AND ASSIGNMENT THEREOF TO THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority (the “Authority”) administers the Downtown CBD Redevelopment Project (the “Project”) within the City, which was established under Minnesota Statutes, Sections 469.001 to 469.047 (the “HRA Act”). 1.02. The Authority has undertaken a program to acquire homes in the Project in order to address foreclosure problems and remediate and prevent the emergence of blight. 1.03 City staff have negotiated a Real Estate Purchase Agreement with the Remax Results (the “Seller”) dated as of July 25, 2011 including all related addenda and disclosures thereto (collectively, the “Purchase Agreement”), for real property located at 4133 2nd Street Northeast and legally described as follows: THAT PRT OF LOT 14 BLK 2 REAR OF BLK D COLUMBIA HEIGHTS ANNEX LYG SLY OF N 90 FT THEREOF & LYG WLY OF A LINE DRAWN FROM A PT ON S LINE OF N 90 FT OF SD LOT 14 129.6 FT E OF W LINE OF SD LOT 14 TO A PTON N LINE OF LOT 11 SD BLK 2 129.6 FT E OF W LINE OF SD LOT 11 SUBJ TO EASE OF REC. (the “Property”), which Purchase Agreement is contingent upon approval by the Economic Development Authority. 1.04. The Purchase Agreement has been prepared and submitted to this Authority and is on file with the City Manager, and/or the Executive Director of the EDA. Section 2. Approval and Assignment. 2.01. The Purchase Agreement for the Property is hereby approved, and the execution of the Purchase Agreement by the EDA is hereby ratified. Pursuant to the Purchase Agreement, the EDA will purchase the Property for $22,500. City staff and officials are authorized and directed to take all such other actions to complete the purchase of the Property, including without limitation execution of all documents and agreements related to such transaction. 2.02. Contingent upon approval of the Authority, the City hereby assigns its interests in the Purchase Agreement to the Authority. City staff and officials are authorized and directed to take all such other actions to complete the assignment of the City’s interests in the Purchase Agreement to the Authority, including without limitation execution of any documents and agreements necessary to effectuate such assignment. EDA Commission Minutes Page 13 August 1, 2011 st Passed this 1 day of August Offered by: Williams Second by: Herringer Roll Call: All ayes ATTEST: ____________________________________ President Gary L. Peterson __________________________________ Shelley Hanson, Secretary 8. DISCUSSION ON MEETING DATES nd At the February 22 EDA meeting the commission decided to temporarily change the meeting date and times to the first Monday of each month prior to City Council work sessions at 6:30pm. At that meeting it was decided that after six months the commission would revisit the meeting schedule and decide if a bylaw change would be made to formally change the meeting date to the first Monday of the month rather than the fourth Tuesday of the month. If the commission would like to change the meeting date to the first Monday of the month staff will prepare a bylaw amendment for the September meeting. The theory behind the meeting date and time change is for those EDA meetings that have a short agenda, they can be completed by the 7:00 p.m. work session start time. If there is a need for a longer agenda, the EDA meeting would effectively consume the first thirty minutes or so of the first part of the work session and the work session would start immediately following the EDA meeting. On the rare occasions where a lengthy meeting is required the EDA can always call a special meeting. A number of cities convene their EDA or HRA commissions prior to the start of a Council meeting, with the purpose of consolidating meeting nights. If the EDA would like the formally change the meeting date to the first Monday of the month at 6:30pm, staff recommends making a motion to amend the bylaws. Questions/Comments from members: Diehm said this schedule has worked well for her. Schmitt said she has a conflict since the Traffic Commission isn’t done by 6:30, so she prefers a different night. Kevin Hansen, Public Works Director, who was in attendance, said he would poll members of the Traffic Commission to see if they could meet at 5:30 pm rather than 6 pm. He will let everyone know. The decision will be to either double up EDA and HRA meetings, or the EDA and work sessions. We will address this again at the next meeting after we find out about the Traffic Commission. EDA Commission Minutes Page 14 August 1, 2011 9. ADMINISTRATIVE REPORTS Citizens Academy- Clark explained that the Citizens Academy is a program directed to staff through the November 2011 work plan. Staff is working to implement the program in January, 2012. The program is designed to better inform citizens of Columbia Heights on the inter-workings of local government. In this program, citizens will be able to:  BECOME MORE INFORMED ABOUT YOUR LOCAL GOVERNMENT  LEARN THE ROLE OF EACH DEPARTMENT IN THE CITY  GET HANDS-ON EXPERIENCE WITH YOUR GOVERNMENT  PARTICIPATE IN SIMULATED EXERCISES Other cities have implemented this program and found that residents were very interested and found it a good way to get involved. Clark said the handout for those interested in becoming a participant, will ask them to please sign up and further information will be distributed to them. If residents have any further questions, they may contact Jeff Sargent at (763) 706-3673. Questions/Comments from members: Nawrocki asked if there is a budget for this. Clark said it would only cost about $300. There may be some staff time to prepare information on the department and commission functions, but otherwise the costs would be minimal for paper and refreshments. He thought the plan would be to offer this on an annual basis and that the meetings would be 2-3 hours in length, one night a week, for six weeks. The 2010 Census Report- Clark said he included the report in the agenda packets for the members to review. Foreclosure Stats- Clark stated there are currently 366 active foreclosures in the City. And since 2007, 544 have been sold. He stated that staff is working on stats detailing the number of rentals we now have due to this foreclosure situation, and the price points that properties in the City have been selling for. Those will be distributed to members at the next meeting. Root Property- The City received notice on July 18, 2011 of Columbia Heights properties that went in to Tax th Forfeiture. One of those properties is the Root Property located on the southwest corner of 40 and University Ave. Clark told members that he has sent a letter to Anoka County asking them to partner with the City of Columbia Heights to see if DEED would consider awarding an Investigation Grant for possible clean-up of this property. EDA Commission Minutes Page 15 August 1, 2011 10. OTHER BUSINESS- th 37 and Central Ave-Clark reported it is moving forward and O’Reilly’s may be submitting plans in September for October meeting approvals. O’Reilly’s would not accept any previous reports that had been done on the site, and basically started over. That is the reason it has been delayed. The backside of the Grand Central Lofts site is being cleaned up. They have re-graded the empty land, the bituminous has been removed, and it will be re-seeded shortly. The front portion is being maintained, but there is no further word from the owner of the site as to future development. Motion by Williams, seconded by Diehm, to adjourn the meeting at 8:08 pm. Respectfully submitted, Shelley Hanson Secretary