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HomeMy WebLinkAboutEDA AGN 02-06-12AGENDA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Tuesday February 6, 2012 6:30pm City Hall, Conference room 1 Call to Order /Roll Call /Oath of Office: Gerry Herringer Gary L. Peterson, President Bobby Williams Marlaine Szurek, Vice President Bruce Nawrocki Tammera Diehm Secretary /Treasurer Donna erring tr (term expired) 2. Pledge of Allegiance 3. Election of Officers President Vice President Secretary /Treasurer CONSENT AGENDA 4. Approve Minutes of November 22, 2011 Approve financial report and payment of bills for November and December 2011 on Resolution 2012 -01. Motion: Move to approve Consent agenda as presented. BUSINESS ITEMS 5. Bylaw Amendment— Resolution 2012 -02 Motion: Move to waive the reading of Resolution 2012 -02, there being ample copies available to the public. Motion: Move to adopt Resolution 2012 -02, Resolution to Amend and Restate the By- Laws of the Economic Development Authority of Columbia Heights 6. RFP process for Scattered Site lots Motion: Move to approve the RFP Guidelines and process for the sale of Scattered Site lots. 7. Administrative Report 1) Community Development Steering Committee 2) 2012 -2013 Work Plan 8. Other Business The next regular EDA meeting will be Tuesday, March 5, 201 2 at City Hall. TRANSCRIPT OF PROCEEDINGS FOR ELECTION OF OFFICERS FOR 2012 FOR THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) The meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by the Executive Director, on Monday, February 6, 2012. Election of officers. The Executive Director stated that the order of business was election of officers. Commissioner nominated Commissioner as President. There being no further nominations, upon vote being taken, Commissioner was elected President. NOTE The President thereupon assumes the office and presided over the meeting. Commissioner nominated Commissioner as Vice President. There being no further nominations, upon vote being taken, Commissioner was elected Vice President. Commissioner nominated Commissioner as Secretary /Treasurer. There being no further nominations, upon vote being taken, Commissioner was elected Secretary /Treasurer. fI SOrni V path c� t e 6�F � �ixsc ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF NOVEMBER 22, 2011 IN CONFERENCE ROOM 1 The meeting was called to order at 7:00 pm by President -Gary Peterson. Members Present: Bruce err ge •, Maarlaine Szurek. Tamme a hm arri ed at 7 28 p perry Staff Present: Walt Fehst, Scott Clark, Sheila Cartney, and Shelley Hanson. 2, PLEDGE OF ALLEGIANCE- RECITED 3, CONSENT ITEMS 1. Approve the Minutes front September 6, 2011 (2), and October 10, 2011. 2, Approve the Financial Report and Payment of Bills for August, September, and October 2011 on Resolution 2011 -17. Questions from memb There were no questions at this time. Motio there n being lnlample amount f by copies' available to the public. All yes. MOTION 17 PASSED. 2011-17 approv hg thel ayment�f bills f to approve September, and October ayes. MOTION PASSED.: EDA RESOLUTION 2011 -17 NT RE' SOLUTION F THE (EDA) All ROVING THE C AL STATEMENT FOR I TA UGUST,OEI T EMBER, AND AUTHORI OCTOBER 2011 AND PAYMENT OF BILLS FOR THE MONTHS OF AUGUST, SEPTEMBER AND OCTOBER 2011. WHEREt AS, the Columbia Heights Economic Development Authority (EDA) is required a ll Minnesota disbursements, ' the r goat iret p d etaile d til mo eyon hand, tile prposes t the money on hand t be ts and 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 Page 2 November 22, 2011 WHEREAS, the financial statement for the months of August, September and October 2011 has been reviewed by the EDA Commission; and WHEREAS, the EDA has examined the financial statements 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 22 " Day of November 2011 MOTION BY: Szurek SECONDED BY: Williams AYES: All ayes Gary Peterson, President Attest By: Shelley Hanson, Secretary BUSINESS ITEMS 4. Fourth Amendment to Huset Park Development per Resolution 2011- 18 -BNC Bank Cartney reminded members that on October 25, 2004 the City, EDA and Huset Park Development Corporation entered into contract for private redevelopment of the "Industrial Park." On August 1, 2007 the same parties agreed and entered into an Amended and Restated Contract for Private Redevelopment, and on February 9, 2009 the same parties entered into an Amended and Restated Contract for Private Redevelopment changing commencement and completion dates for development. Page 3 November 22, 2011 The "Minimum Improvements" in the contract is broken out into phases and includes three different housing types and one commercial space. According to the contract there are to be a total of 277 townhouse units, 50 senior units, and 183 condominium or cooperative housing units and 11,650 square feet of commercial space. Due to the down turn in the housing market and economic conditions, Schafer Richardson has since foreclosed on this project and BNC Bank has taken over the Contract for Private Redevelopment. BNC Bank requests additional completion date amendments to the development contract for Section 4.3 Phase III A. Section 4.3(c) states "if the Redeveloper is making substantial progress with respect to the redevelopment project, and is unable to meet one or more of the above - referenced deadlines, the Authority and Redeveloper shall negotiate in good faith for a reasonable period to extend the time in which necessary action(s) must be taken or occur, the lapse of which time would otherwise constitute a default of this Agreement." I n ___.:-- ,_ tl,a cacnild .9mendments dates and the new proposed Request: The roucwu,g tuuko Phase . Y . I.. - Amended Date Pro osed Date IIIA Housing Commence by 12/30/2011 Commence by 1213012012 and Complete by 12/30/2013 Complete by 1213012014 Commercial IB 80% October 31, 2011 80% Complete October 31, 2012 Staff recommends the EDA amend the development contract as requested to change commencement and completion dates. Questions from members: Cartney stated that BNC has hired Cassidy and Turley to market this property to developers on their behalf. Jim McCaffrey, Sr. Vice President, was present at the meeting to answer questions. Nawrocki asked about the financial arrangements on this project. He wanted to know the amount of TIF funds they have received thus far. Clark answered that Revenue Bonds were obtained for which there is no obligation back to the City. The amount of the bonds total approximately 8.7 million dollars. In addition, there is a B note. The TIF District generates enough funds to pay the bond and any residual goes to pay off the B note. The B note payment has been averaging $80,000. Nawrocki asked how long the bond runs. Clark answered 25 years. Nawrocki asked how much TIF has been raised thus far. Clark said he would not guess at the figure, but would get the number to Mr. Nawrocki. Schmitt asked if just the dates are changing, or are they planning on changing the type of construction from the original plan also. Cartney stated they arejust changing the dates now. Plans on how to finish the project will be discussed in 20 12 once a Developer is found that has a Page 4 November 22, 2011 plan to finish the project that would work according to the market conditions today and that would be acceptable to the Board. Clark explained that BNC just recently retained the services of Cassidy /Turley and they are investigating ideas that may work on these sites. Jim McCaffrey told members they are contacting developers who specialize in Senior Complexes such as, coops, assisted living buildings, townhouses, as well as office /retail designed space. He said the commercial piece with condos on top design, that originally was proposed, is no longer a viable option. The market on condos has changed drastically in the last five years. Herringer asked what happened to Ryland Homes and wondered why they pulled out of the project. McCaffrey responded that with the downturn in the market, it became too costly for Ryland because of the amount they had to put into purchasing each site, the amount needed for sewer and water work and the amount to re -grade the site to make it suitable for building. Ryland may still be a viable option and Cassidy /Turley is still pursuing this if acceptable terms can be reached for all parties. He noted that BNC has already Lost several million dollars on this project. Herringer then asked if the TIP' district is solid enough to continue covering the Bond in the future. Clark said he believes it is, but cautioned that the amount paid on the B Note could drop because of changes in the Homestead Tax Valuation that recently took effect. Nawrocki asked if Shafer - Richardson had borrowed other money for this project. Clark said there were a significant number of junior partners in this project and that there was a significant mortgage on this property. Tax Increments and land sales were supposed to be enough to cover the mortgage payments, but when the market changed and revenues dropped due to several factors, including adjustments in the Agreements, the payments could no longer be met. Motion by Szurek, seconded by Schmitt, to waive the reading of Resolution 2011 -18, there being ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Szurek, seconded by Schmitt, to adopt Resolution 2011 -18, a Resolution approving the He ght EDA BNC Bank as Successor or to Iluset Park Development C a potation Roll Columbia call: COLUMBIA HE,IGIITS ECCONOMI DFVE OPMT•,NT AUTHORITY RESOLUTION NO. RESOLUTION APPROVING A FOURTH AMENDMENT TO AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA ECONOMIC S SUCCESSOR A UTHORITY, COLUMBIA HEGHT AND BNC NATIONAL BANK UC I CESS R TO HUSET PARK DEVELOPMENT CORPORATION Page 5 November 22, 2011 BE IT RESOLVED By the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority ( "Authority ") as follows: Section 1. Recitals 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ( "EDA Act "), and is currently administering the Downtown CBD Redevelopment Project ( "Redevelopment Project ") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ( "HRA Act "). 1.02. The Authority, the City of Columbia Heights ( "City ") and 1-luset Park Development Corporation (the "Redeveloper ") entered into a into An Amended and Restated Contract for Private Redevelopment dated as of August 1, 2007, as amended by a First Amendment thereto dated June 16, 2008 and a Second Amendment thereto dated as of February 9, 2009 and a Third Amendment Thereto dated as of prop er ty wit 8, the RedevelopmentiPr,oject,rgener�n generally Iota ed east of Univers Avenue and south and west I'P Y of Huset Park. 1.03. BNC National Bank (the "Lender ") is the successor in interest to Redeveloper under the Contract. 1.04. The Lender has requested the Authority and City to modify the Contract in certain respects, and the Authority has caused to be prepared a Fourth Amendment to Amended and Restated Contract for Private Redevelopment between the Authority, City and Lender (the "Fourth Amendment "). 1.05. The Board has reviewed the Fourth Amendment and finds that the execution thereof and performance of the Authority's obligations thereunder are in the best interest of the City and its residents. Section 2. Authority Approval; Further Pro ceedings. 2.01. The Fourth Amendment as presented to the Board is hereby in all respects approved, subject Executive D ecto provided ded that th xecution of tile t documents by such l officials p sl all be b onc Pres lusiveeviden e c of approval. Director are hereby authorized to execute on behalf of the 2.02. The President and Executive Authority the Fourth Amendment and airy documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 22 "` day of November, 2011. Gary Peterson, President ATTEST: Shelley Hanson, Secretary Page 6 November 22, 2011 Dichm arrived at the meeting. 5. 37 and Central Amended Contract - Resolution 2011 -19 Clark reminded members that on May 2, 2011 the EDA approved a new Development Agreement with 37 and Central LLC (Chris Little) that allowed the reduction of the Minimum Improvements to 7,500 sq.ft. Based on this, the EDA eliminated $30,000 of a ssistance that was programmed for turn lane construction costs. The Agreement also had an October 1, 2011 deadline date for construction start but due to the amount of due diligence by O'Reilly, that start date could not be met. At this time O'Reilly has established a closing date with 37 "' and Central LLC for December 12, 2011 and a construction start date of May 1, 2012. Actions for the EDA: 1) Agreement to assign the original development agreement and the obligations to O'Reilly. Attached is an Assignment Agreement with the change from the May 2, 2011 Agreement regarding construction start (Section III- 3.1. 43). The new dates are a construction start date on or before May 1, 2012 and a completion date of November 1, 2012 2) The policy discussion for the EDA concerns the level of assistance being given to this project. As stated previously, the EDA eliminated $30,000 of assistance due to the reduction in size of the original minimum improvements. Since that time, O'Reilly has done soil investigation work on the property, and has determined that substantial soil correction will be needed at a cost of up to $80,000 (report was included in the agenda packet). The issue, in part, is that City demolitions (which included all four previous buildings on this redevelopment site) replaced soils with organic flee materials which are not compacted. These lots were sold "as is" with the intention that the type of building constructed would dictate the level of soil compaction needed. Since this cost was not assumed by the developer he is seeking that the $30,000 be reinstated and, in turn, that he will absorb the remaining cost through a reduced acquisition cost to O'Reilly, since O'Reilly wants the price reduced by the $80,000 figure, or they have threatened to walk away from the project. Staff recommends approval of the Assignment as written. Questions froin member Kevin Hansen, City Engineer, reviewed O'Reilly's report and submitted his opinion regarding the soils report and Clark verbally reviewed this with the commission members. He stated that the report indicated that 5 of the 6 soil borings were not done where the buildings were demolished. Therefore, the soil conditions noted were not from the demolition of the buildings. The O'Reilly report said it will cost approximately $55,000 to take out soil, bring in new fill and compact the site, with an additional $25,000 needed to stabilize the gravel area that will be used for their parking lot. The City Enegineer doesn't feel this amount is justified since it will not be supporting Page 7 November 22, 2011 a structure of any kind. Kevin went on to state, that although this is an issue between O'Reilly and Mr. Little, his opinion is that the price reduction O'Reilly is asking for is inflated and unjustified. It is his experience that some of these costs are normal development costs that would be incurred by the builder to ready the site for construction. Chris Little said that he contacted Frattalone Excavation as they were the ones who did the demolition work on the sites previously. They reviewed the report and came back with a similar response as Kevin Hansen. Diehm asked if he thought O'Reilly's would walk away from the project if concessions were not made on the price point, and Chris responded that they have indicated they would. Diehm then asked when their lease was up at their current location. Chris thought it was in April. Herringer asked where the borings were done, and how many were done where the building will be placed. Clark said that only 2 of the 6 borings were taken where the building will be constructed. Herringer and Peterson both felt that the borings should have been taken around the perimeter of the building. They also felt the price reduction to make corrections was too high based on the findings. Szurek agreed. After further discussion, the Board was not willing to make any concessions, and encouraged Chris Little to inform O'Reilly's that their request was out of line for many reasons. Williams stated that they already have a lot of money invested in the project and that this is a good location for them, so he didn't think they would back out of the deal over this. Most of the members felt the amount of soil work and expense for such, was overstated and could be reduced if they separated the corrections needed for the building site from the corrections needed for the parking or green space, and that these are normal development costs that should be bore by them. Motion by Szurek, seconded by Williams, to waive the Reading of Resolution 2011 -19 there being ample copies for the public. All ayes. MOTION PASSSED. Motion by Williams, seconded by Szurek, to adopt resolution 2011 -19 approving agreement for assignment and release of obligations, and amendment of amended and restated contract for private redevelopment by and between Columbia Heights Economic Development Authority and the City of Columbia Heights Minnesota and 37"' and Central LLC. Roll call: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2011-19 RESOLUTION APPROVING AGREEMENT FOR ASSIGNMENT AND RELEASE OF OBLIGATIONS, AND AMENDMENT OF AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BE, E,TEW EEN COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY COLUMBIA HEIGHTS MINNESOTA ND 3 AND CENTRAL HE CITY OF LO C MBIA HE IGHTS MINNESOTA Page 8 November 22, 2011 BE IT RESOLVED By the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority ( "Authority") as follows: Section 1. Recitals 1,01. The Authority, the City of Columbia Heights and 37th and Central LLC (the "Redeveloper ") entered into a Contract for Private Redevelopment dated June 24, 2008, as amended by a First Amendment thereto dated April 28, 2009, and as amended by the Second Amendment thereto dated May 25, 2010 (collectively, the "Contract "). 1.02. The Redeveloper has concluded negotiations with O'Reilly Automotive Stores, Inc. n Missouri corporation ( "O'Reilly ") for the purchase by O'Reilly of all of the Redeveloper's interest in the Contract. 1.03. The Board has reviewed the "AGREEMENT FOR ASSIGNMENT AND RELEASE OF OBLIGATIONS, AND AMENDMENT OF AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETEWEEN COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY COLUMBIA HEIGHTS MINNESOTA AND THE CITY OF COLUMBIA HEIGHTS MINNESOTA AND 37th AND CENTRAL LLC" (the "Assignment ") providing for the assignment of the Contract to O'Reilly, the release of the Redeveloper from its remaining obligations under the Contract, and the amendment of the Contract as stated therein, and finds that the execution thereof and performance of the Authority's obligations thereunder are in the best interest of the City and its residents. Section 2. Aut hority Approval; Further Proce edings. 2.01. The Assignment as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Assignment of the Contract and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 22 "' day of November, 2011. Gary Peterson, President ATTEST: Shelley Hanson, Secretary Page 9 November 22, 2011 The Agreement and Amendment is as follows: AGREEMENT FOR ASSIGNMENT AND RE LEASE OF OBLIGATIONS, AND AMENDMENT OF AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETEWEEN COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY COLUMBIA HEIGHTS MINNESOTA AND THE CITY OF COLUMBIA CENTRAL LLC HEIGHTS MINNESOTA AND 37 AND I. Recitals. 1.1 The Effective Date of this Agreement is December _, 201 1. 1.2 The Parties to this AGREEMENT FOR ASSIGNMENT AND RELEASE OF OBLIGATIONS, AND AMENDEMENT OF AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY COLUMBIA HEIGHTS MINNESOTA AND THE CITY OF COLUMBIA HEIGHTS MINNESOTA AND 37 °i AND CENTRAL LLC (the "Agreement "), are the COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of Minnesota (the "Authority"), the CITY OF COLUMBIA HEIGHTS, a Minnesota municipal corporation (the "City "), 37 "' and CENTRAL LLC., a Minnesota limited liability company (the "Redeveloper ") and O'REILLY, a ( "Successor Redeveloper "). 1.3 The Authority, City and Redeveloper are parties to that certain Contract for Private Redevelopment dated June 24, 2008, as amended by a First Amendment thereto dated April 28, 2009, and as further amended by a Second Amendment thereto dated May 25, 2010, all as recorded in the Office of the Anoka County Recorder (collectively, the "Contract"). 1.4 Various real estate parcels are subject to redevelopment under the Contract. The Successor Redeveloper has entered into that certain "Purchase Contract" with 37 °i and Central LLC, to purchase all of the parcels subject to the Contract and described as the "Redevelopment Property" in the Contract for the purpose of developing the "Mininnum Improvements ", also as defined in the Contract. The Redevelopment Property is more fully described on Schedule A, attached hereto. 1,$ Among other obligations of the Redeveloper under the Contract, the Redeveloper entered into that certain "Loan Agreement' and executed that certain "Promissory Note" in the principal amount of $43,600, with Redeveloper as Maker and the Authority as Holder, each dated as of July 2, 2008, in order to provide additional financing for the Project. The Loan Agreement and Promissory Note by their terms require Redeveloper to pay off the Note upon the sale of the Minimum Improvements. 1.6 In connection with the sale of tine Redevelopment Property the Redeveloper has requested an assignment of, and a release from, the terms and conditions of the Contract, and as to the Redevelopment Property pursuant to Article VIII of the Contract. 1.7 Redeveloper desires to assign, and Successor Redeveloper desires to assume Redeveloper's rights and obligations under the Contract, and with respect to the Redevelopment Property. Page 10 November 22, 2011 1.$ The Authority and City have approved certain grant finding for use consistent with the proposed development of the Minimum Improvements as described in § 3.7 Grants of tine Contract. be awarded to SuccessorvRedeveloperaupon d its g com commencement of construction balance 0 of O the Minimum Improvements. 1.9 The City has approved the Redevelopment Property for use consistent with the proposed development of the Minimum Improvements. On that basis, the City and the Authority are willing to approve an assignment of the Contract to Successor Redeveloper and release Redeveloper from the terms and conditions of the Contract subject to the terms and conditions of this Agreement. THERE FORE, IT IS AGRFFD AS FOLLOWS: II. Agreement. The Recitals in Section I are incorporated into this Agreement by reference. 2.1 Redeveloper hereby assigns, and Successor Redeveloper hereby expressly assumes all of the rights and obligations of Redeveloper under tine Contract with respect to construction o f the Minimum Improvements on the Redevelopment Property. 2.2 The Authority and the City hereby consent to and approve the assignment in section 2.2 above. 2,3 From and after the effective date set forth above, Redeveloper is released from its obligations under the Contract, and as to the construction of tine Minimum Improvements on the Redevelopment Property, subject to the following: (a) Redeveloper and Successor Redeveloper completing negotiation and execution of that certain "Purchase Contract ", transferring Redeveloper's interests under the Contract and the Redevelopment Property to Successor Redeveloper. (b) Redeveloper and Successor Redeveloper executing this Agreement. (c) Redeveloper paying off the Promissory Note ($43,600) in favor of the Authority at or before closing with Successor Redeveloper. 2.4 'file parties agree that upon issuance of a Certificate of Completion for the Minimum Improvements, that the Contract will no longer affect the Redevelopment Property, the Successor Redeveloper or its successors or assigns, and no further documentation will be required to remove the Contract or this Agreement from the real property records of the Redevelopment Property. is necessary benefici 1 to foregoing, e move the Contract and this Agreement that nentf om al property documentation n records of tile Redevelopment Property, the parties agree to execute any and all reasonable documentation to remove the Contract and this Agreement from the real property records of the Redevelopment Property without any condition or delay. III. Amendments to Contract. 3.1 Section 4.3 of the Contract states that the Redeveloper must commence construction of the Minimum Improvements by May 1, 2011, and must substantially complete construction of the Minimum Improvements by January 1, 2012. The parties agree the Redeveloper is not in default under Section 4.3 of tine Contract. Section 4.3 of the Contract is amended as follows: Page 11 November 22, 201 1 Section 4.3. Completion of Construction (a) Subject to Unavoidable Delays, the Redeveloper must commence construction of the Minimum Improvements b y M May 1 2012 and must November 1, substantially complete construction of the Minimum Improvements by january 1, 2012. All work with respect to the Minimum bnprovements to be constructed or provided by the Redeveloper on the Redevelopment Property shall be in substantial conformity with the Construction Plans as submitted by the Redeveloper and approved by the Authority and the City. If the Redeveloper is making substantial progress with respect to the redevelopment project, and is unable to meet one or more of the above - referenced deadlines, the Authority and the Redeveloper shall negotiate in good faith for a reasonable period to extend the time in which necessary actions) must be taken or occur, the lapse of which time would otherwise constitute a default under this Agreement. 3.2 Successor Redeveloper shall be eligible to receive the remaining $100,000 in grant funds from the Authority authorized by § 3.7 of the Contract upon being issued a building permit for construction of the Minimum Improvements. Section 3.7 of the Contract is amended by adding a new sub - section 0) to read as follows: 0) Redeveloper sh all conduct a waee survey at the dire ction of Autho staff for compliance with CDBG grant received for the constr'uctron of the Minimum Improvements. 3.3 Section 10.6 (a) of the Contract is amended to read as follows: (a) in the case of the Redeveloper, is addressed to or delivered personally to the Redeveloper at 0 Anto Parts Charlie Downs Vice President Real Estate 233 S Patterson SprinaPield, MO 65801 3.4 Upon final execution and approval of this Agreement, the "Successor Redeveloper" as described in this Agreement shall be described as the "Redeveloper 3.5 This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 3.6 All other terms and conditions of the Contract, as amended herein, shall remain ill fill force and effect unless modified by the parties pursuant to the requirements of the Contract. [Remainder afpage intentionally left blank, separate signature pages to innnediatelyfollow] [Separate Signature Page to Approval of AssigRedevelopmentJ se of Obligations Under Contract For Private COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director Page 12 November 22, 2011 STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this _ day of November, 2011, by Gary L. Peterson and Walter R. Fehst, the President rand Director behalf of the olu obia Heights Economic Developm public ent Authority, a p y politic Notary Public [Separate Signature Page to Approval of Assignment ve n lle f se o Obligations Under Contract For Private CITY OF COLUMBIA HEIGHTS B Its Mayor By Its City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this _ day of 2011, by Gary L. Peterson and Walter R. Fehst, the Mayor and City Manager of the City of Columbia Fleights, a Minnesota municipal corporation, on behalf of the City. Notary Public [Separate Signature Page to Approval of Assignin e t and Release of Obligations Under Contract For Private 37TH AND CENTRAL LLC By Christopher Its Page 13 November 22, 2011 STATE OF MINNESOTA ) ss. COUNTY OF ) The foregoing instrument was acknowledged before Inc this _ day of 2011 by Christopher Little, the of 37th and Central LLC, a Minnesota limited liability company, on behalf of the company. Notary Public [Separate Signature Page to APproval ofAssignnieni diR nt] se of Obligations Under Contract For Private Redevelo O'REILLY AUTOMOTIVE STORES, INC. By Its STATE OF ss. COUNTY OF ) 2011 The foregoing instrument was acknowledged before of O'Reilly Automotive Staes, ]nc, a Missouri 011 by , the corporation, on behalf of the corporation. Page 14 November 22, 2011 SCHEDULE A REDEVELOPMENT PROPERTY City Parcels Address 3710 Central 3718 Central 3722 Central Redeveloper Parcels Address 3700 Central PIN 35- 30 -24 -44 -0119 35- 30 -24 -44 -0 35- 30 -24 -44 -0 Former Use Property Description Beecroft building COLUMBIA HEIGHTS (demolished) ANNEX TO MINNEAPOLIS, ANOKA COUNTY, MINNESOTA LOT 16 BLK 87 COL HTS ANNEX Non - conforming single- COLUMBIA HEIGHTS family home ANNEX TO MINNEAPOLIS, ANOKA (demolished) COUNTY, MINNESOTA LOT 15 BLK 87 COL HTS ANNEX Non - conforming single- COLUMBIA HEIGHTS family home ANNEX TO MINNEAPOLIS, ANOKA (demolished) COUNTY, MINNESOTA LOT 14 BLK 87 COL HTS ANNEX Farmer Use Property Description Chutney restaurant 0 FT OF LOT 18 BLK 87 HEIGHTS ANNEX, SUBJ TO EASE OF REC Chutney parking lot COLUMBIA HEIGHTS ANNEX, TOG /W THAT PRT OF LOT 18 SD BLK LYG N OF S 50 FT THEREOF, SUBJ TO EASE OF REC PIN 35- 30 -24 -44 -01 3706 Central 35- 30 -24 -44 -01 6. 3805 2"' Street -GMHC Clark explained that in 2007 the Greater Metropolitan Housing Corporation (GMHC) partnered with the City and purchased a blighted property at 3805 2 " Street. The original concept was that GHMC would acquire and demolish the property (this cost to GHMC was a total of $122,327) and in turn they would split the lot and construct two new homes. In order to do this their pro forma showed a total financial gap of $86,646 ($43,323 per lot), which the City agreed to give with the source of funding being the Anoka County Levy. After the purchase by GHMC, the economy failed and no Page 15 November 22, 2011 homes were built, and based on information attached in a letter from GHMC, dated November 16, 2011, they have $146,081 invested in the project including the original purchase, demolition, taxes, interest carry, etc. The second part of tie financial equation, which is new, is that GHMC had received previously a rehabilitation grant from the Minnesota Housing Finance Agency that they used for two rehabs in our community. They have $29,000 left over from the original $105,000 grant and this amount is part of their "solution" for the large and new amount of gap financing (they have a gap financing one up due to the carr y co sts 00and their both homes are revenue has decreased tdue since to the level expenditure d type of hone they could construct). GHMC's letter has three different solution options for the EDA to consider: 1) The EDA to buy the two potential lots for their $146,081 of investment. Staff views that is excessive. GHMC, like all developers, partnered with the City and their desire to be made whole goes against all previous EDA policy actions. 2) If the EDA buys the lots at the $146,081 price GHMC would like the EDA to also contribute up to $20,000 to match with the MHFA's grant residual of $29,000 to allow another rehab in the City. Based on the letters submitted to the EDA, the average gap from the last two rehabs was $38,000 so the $20,000 seems excessive. 3) The third option, letter #2 dated November 16, 2011, is that the City me its contract to allow all of the original $86,646 gap financing funds, p $29,000, to be used as the gap financing for one lot and one house. According to GMHC's pro forma this would provide a break even on one lot but would leave an outstanding debt of $77,000 against the second lot, with that financing to be figured out at a later date. Again, this seems like a solution that doesn't solve a problem, only delays it. All of these solutions do not involve, in the long run, GHMC taking a piece of the incurred losses, but the EDA potentially assuming all of the increased costs from the original $86,646. Staff recommends none on these options. Representatives from GHMC were present to discuss this. Questions /Discussion: Carolyn Olson and Bill Buelow from GMHC were in attendance. There was a discussion regarding the various options GMHC had proposed for both the property they own at 3805 2" Street and a funding match for the rehab of another property in Columbia Heights. One of their suggestions was for the City to purchase 3805 2" d Street from them for the amount they have into the lot(s) which would be $146,081. This amount covers the purchase price, demo costs, and taxes paid on the property thus far. It was noted that this property could be divided into two lots but that new sewer and water lines would be needed to the properties. There was a discussion on whether the City is interested in purchasing this site for the scattered site district. Clark said these properties are already included in the district. The Board was in agreement that they were not interested in purchasing the properties for $146,081. Page 16 November 22, 2011 Nawrocki asked if we have expended any funds on this site yet. Clark told him that we haven't to date, but that $86,000 has been obligated through the Anoka County Levy Funds. Diehm stated that she was happy with the City's past experience with GMHC and that they had proven to be good partners in the redevelopment of some of the properties in Columbia Heights. She wants to continue that relationship, but we need to consider other options since we can't re- purchase the lot from them for that amount. There was a discussion about possibly offering to purchase the properties for the $86,000 that had been allocated. The majority of the Board was not in favor of doing that either. agenda packet. r Ayes: Nawrock Schmitt, k, Peterson, h rson, Herringer. Nays: sugge e Diehm and Williams. Motion Passed. Diehm asked if there was a purchase point Nawrocki would consider. Nawrocki was not in favor of what had been suggested so far, and thinks the City is sitting on enough properties now. Carolyn Olson said they may have to consider letting the property go into tax forfeiture. Schmitt then stated she is in favor of approving a $20,000 match to their MHFA grant funds which would enable them the rehab another property. Buelow was asked what the timeline was for them to use the money from MHFA so they didn't lose it. He told members they have a couple months in order to find a property and start the rehab. Motion by Schmitt, seconded by i1 match the MHFA grant monies GMHC has for the rehab of a proper y in Columbia H Heights. to I-Ierringer asked if there were any restrictions to the new buyers if this happened. Olson responded that they must qualify for the mortgage and have an income up to 115% of the metro area median income. He then asked if approving this motion allows GMHC to proceed with obtaining another property. He was told, yes, they would then proceed. He stated he has confidence that they will do a good job based on their past performance. Diehm supported the motion, but encouraged them to keep the City's portion at a minimum. Nawrocki opposes the motion until GMHC has a specific property in mind. He would like to wait until he has some concrete plans to review before allocating funds for this. Roll call vote on Schmitt's motion: Ayes: Diehm, Schmitt, Szurek, Peterson, Herringer, and Williams. Nays: Nawrocki. MOTION PASSED. EDA Minutes Page 17 November 22, 2011 7, Liquor License Discussion Staff is of the opinion that one of the economic development opportunities for the city to capitalize on is the success that Northeast Minneapolis has been able to capture as an entertainment venue for restaurants and their art district branding. It is Staff's opinion that one of the large impediments to securing restaurants in this community is the current strong beer and wine license requirement for restaurants that demands a minimum of 75 seats and a distance requirement of 300 feet from schools or churches (See attached City Ordinance, in part, Section 5.505). This type of license requires that at least 60% of the gross receipts be generated by food. The State requirement is 25 seats with no distance restraint and staff is recommending an Ordinance change to match the State minimum of 25 seats. Staff is not aware of the rationale for the City's policy to triple the requirement, but both the City Attorney and Chief of Police view that the change to 25 seats are not a problem from their individual discipline perspectives and support the change. Staff already had this item on our annual internal work plan but a real life example has presented itself. Attached is a letter, dated November 15, 2011, from Pat Sukhtipyaroge, who is opening the Royal Orchard at 4022 Central Ave NE. This location will have around 40 seats, and as such, is not eligible for a strong beer and wine license. As additional information, attached is a chart that illustrates how ten other cities handle this type of license. Staff views that by changing the licensing requirements that the city creates an additional opportunity for restaurant development and that there is not a down side for this amendment to the Ordinance. Staff seeks a discussion on this topic with the EDA and if there is a consensus to proceed, the City Council would be the acting agent for the license amendments. Questions from member Peterson said he has no problem with changing the Ordinance. Dielun stated she also has no problem with changing it. She said the small establishments are less troublesome than large venues most often. Motion by Schmitt, seconded by Szurek to have the City Council consider a license change for hard beer and wine license requirements reducing the seating requirement from 75 to 25 seats, with no distance requirements. Roll Call: Ayes - Diehm, Schmitt, Szurek, Peterson, Herringer, and Williams. Nays: Nawrocki g. Potential CDBG Application Cartney explained that Community Development Block Grant (CDBG) applications are due in January 2012 and require a Resolution of support by the City Council. At this time staff would like to discuss the option of applying for funds to create a Business Loan for our community. The rational for this type Page 18 November 22, 2011 of application is that within the City there is a significant number of small, vacant commercial buildings. The ability for the City to provide gap financing may provide the opportunity for future sales to occur. The range of acceptable CDBG eligible activities has been greatly reduced over the past ten years. Staff contacted the Anoka County Community Development Department to see what types of loans could be used with CDBG funding. A revolving loan for gap financing for real estate transactions or equipment purchases can be used for new businesses through CDBG funds. The applicant must occupy at least 50% of the building and hire one low- moderate income person for every $35,000 they borrow. The interest rate and term of loan are all things that would need to be determined, but typically cities have a fixed rate at or below prime and 5 -20 year terms. The cities of Blaine and Brooklyn Park have a long history of using CDBG for these loans and have been successful. Clark told members that the Columbia Heights used to have a similar program, but discontinued it when housing issues became more of a priority. If the EDA supports this use of CDBG funds staff will make an application in January and will have a more detailed recommendation for the City Council. Staff is seeking direction from the EDA to apply for CDBG funds for a revolving business loan program, which would be approved by the City Council. Questions from members: Nawrocki asked how many empty businesses we currently have. Clark said there are at least 6 -10 that come to mind along 40 Avenue and Central Avenue. He listed a few that came to mind: 500 40 °i Avenue, 834 40 Avenue, 836 40 Avenue, 4347 Central Ave, and others in the 3900 block of Central, the 4100 block of Central, and the 4800 block of Central. Schmitt asked what would happen if the businesses defaulted on their loans. Cartney explained these loans would be recorded as subordinate mortgages of the property. There is some risk involved since this loan would be secondary or tertiary to the original mortgage, but it should be minimal. She explained that each loan could be approved by the EDA Board or by staff depending on how it is set up. Some members felt it should also be available to existing businesses who want to expand or grow their company. Cartney said she would have to get more information on Criteria set by Anoka County for use of the funds if the Board is interested in approving the application. Nawrocki asked how much money is available. Cartney said the County would not tell her, and they have become very restrictive on how the funds are used. Nawrocki felt it should be used for housing programs. Cartney said housing has been the priority for the last several years and the County is now looking at other venues for these funds to be used. Staff suggested the Business Loan Program because they thought it may succeed with getting County approval. Walt gave a historical review of CDBG monies and how restrictions have evolved and the competition for the funds has developed and that projects are prioritized. Page 19 November 22, 2011 Motion by Diehm, seconded by Schmitt, to move ,forward with a CDBG application for a Revolving Business Loan Program. All ayes. MOTION PASSED. 9. Scattered Site Disposition In 2009, The EDA directed staff to implement all necessary steps to create a Scattered Site Housing District. This district includes 23 parcels with the majority being owned by the City. The increment from this district will replenish the old C8 Redevelopment district (the original source for the scattered site) to allow the city to have additional funds for housing activities. Now that the district is created a policy must be created on the disposition of the lots. There are three discussion areas for the EDA to consider 1) The how 2) conditions of the sale 3) minimum price points. 1)Process options to sell /develop the lots 1) City staff market and work with EDA attorney to sell the lots 2) Hire a realtor to market and sell the properties 3) Partner with Anoka County's realtor to sell and market the properties a. City keep 4 best lots and market and sell to one developer without the use of the realtor 4) Request for Proposals from Developers, non- profit agencies for the lots 2) Conditions. Not only does the EDA have to decide how to dispose of the scattered site properties, a policy on any guidelines, restrictions, minimums etc. should be established. Other cities that have scattered site programs have established guidelines for the development of their lots and have included them in the purchase documents. Even if the EDA chooses to use our current ordinances staff recommends creating guidelines so it is clear to everyone what the expectations are. Below are some standards from our ordinance. Minimum house width is 20 feet for all house styles. A one -story house is required to have a minimum floor area of 1,020 square feet plus an additional 120 square feet for every bedroom over three. There is an exception to reduce the minimum floor area to 960 square feet if the lot size is 6,500 square feet or less. A one and one half story and two story house is required to have a minimum floor area of 960 square feet plus 120 square feet for each bedroom over two. Split level homes are requited to have a minimum floor area of 1,020 square feet plus 120 square feet for each bedroom over three. Floor area may be reduced to 960 square feet if the lot is 6,500 square feet or less. Setbacks for all these houses are Front 25 feet, side 5 feet, corner side yard 10 feet and rear 20% of lot depth. Two detached accessory structures are allowed at a maximum of 1,000 square feet and a three foot setback is applied. A minimum of a two -stall garage (20'x20') is required. The entire lot has a maximum building coverage of 35% for lots under 6,500 square feet, lots over 6,500 square feet have a maximum building coverage of 30 %. If a property is within a Shoreland District impervious surface is regulated to 35% . There are no material requirements for building finishes (garages must match the house) or landscape requirements. Page 20 November 22, 2011 Staff supports the current city ordinance requirements for building sizes but would remove the exception that the floor area can be reduced if the lot is 6,500 square feet or less as most of our Scattered Site lots are less than 6,500 square feet. The EDA should discuss the policy if landscape and building materials standards should be established. Another thing to consider is if the EDA would like to approve the building plans for each house. 3)Minimum price Anoka County has their Columbia Heights NSP lots listed from $20,000 to $40,000. If the EDA decides to hire a realtor it is the realtor's responsibility to provide a market study and price recommendations. Staff has provided recommendations to the scattered site disposition policy and seeks input and direction from the EDA. Staff believes the best option to pursue at this time is #4 which would be to seek proposals from Contractors and non - profits directly and see what the interest is. Cartney said there have been inquiries over the last two years and she had been keeping a list of people to contact. She pointed out that hiring a realtor would necessitate a commission being paid, and is skeptical of how much due diligence they would take in marketing the lots since the prices will be relatively low compared to an already developed site. Questions from members: Nawrocki thinks we are wasting our time because no one is building yet and he thinks getting a Realtor to market the properties would be the best option. Diehm liked the idea to seek proposals. She said that way we don't have to be pressured to accept an offer, and it provides us with more flexibility. Williams and Schmitt agreed. There was some discussion on the types of homes and the sizes they would like to see constructed. Herringer thought we should consider establishing some criteria for the building finishing. Motion by Williams, seconded by Diehm to authorize staff to seek proposals from Developers, Contractors, and Nan - Profits for development of the lots with the minimum size home being 1, 020 sf and the plans needing EDA approval. All ayes. MOTION PASSED. It was suggested that staff contact GMHC to see if they would like to have the 3805 2nd Sheet property included in the RFP list. 10. Administrative Update Work Plan Goals Update - In August 2010 the EDA held a Goals and Objectives Workshop. The purpose of the workshop was to establish (or re- establish) broad goals that serve not only as framework for future actions, but also as a set of values for the Council /EDA. A work plan was established from the discussion at the Workshop. The purpose of the work plan is to identify the goals and objectives of the EDA and to describe strategies for implementation. Not all Page 21 November 22, 2011 programs /activities described in the work plan will be generated through the EDA. Some of the programs /activities described will require other approvals (such as City Council and Planning Commission) and will require input and action from various departments. The report which was included in the agenda packets shall serve as an update on the progress of the work plan. Goal t Sustain Residential Neighborhood Community Gardens: The EDA identified six Scattered Site lots to be used as community gardens. Staff established a policy for the use of the gardens that was approved by the EDA. These lots will continue to be used as community gardens until redevelopment occurs. The EDA should revisit the use of 4235 Washington Street as a garden. Code Enforcement Programs: Community Development staff continued to meet with Police, Fire and Public Works staff to discuss code enforcement efforts in Sheffield and Circle Terrace neighborhoods. This group has been working collectively to communicate issues within these areas and to partner on clean -up efforts in these areas. This group worked with the Circle Terrace neighborhood on adding a street light on Circle Terrace, which helps with patrol and other crime issues at night. As part of these efforts the Police and Fire Department made Ordinance Amendments to help with enforcement issues. The Police added mandatory background checks for renters and landlords are required to keep the background checks on file for the duration of the lease. The Police also amended the Crime Free /Drug Free language that if a tenant is removed from a property due to a lease made violation changes t their another unit notifying outdoor within storage garbage termination. s i on as well Department grass violations. A policy change to grass cutting was made. GHMC- Reevaluate programs: in early 2011 the EDA decided to end services with Gl IMC and have Community Development staff administer the rebate and loan program; by doing this the service fee of $15,000 is saved. To date staff has received roughly 215 calls regarding home improvement programs, 69 rebate applications have been mailed, 31 received and 20 closed. Of the rebates approved $310,686.60 worth of improvements has been made and $36,833.14 in rebates has been approved. There have been 41 loan applications mailed out and 8 received. Grand Central lofts (47 °i and Central): worked extensively with property owner on site improvements. Staff continues to be available to the commercial and residential developer. Sheffield /Heritage Heights: Police and Fire continue their efforts in this neighborhood with weekly patrols and inspections. Community Development has worked with ACCAP to purchase two four - plexes on Tyler Street. Tyler Street is a target area for enforcement efforts. Scattered Site: Staff finished with the demolition of the final 2011 scattered site house at the end of October. The EDA and City Council approved the scattered site tax increment district on October 10 °i and Filter's is working on the certification of the district. In 2010 staff worked with Anoka County to reallocate CDBG money to this district for demolition. At the November EDA meeting staff plans to present disposition options and marketing options. Anoka County NSP Houses: We have continued to support the county's efforts in Columbia Heights. Anytime staff views a house that is suitable for rehab it is forwarded to the county. The County's properties listed in Columbia Heights will be listed on the new city's webpage and literature is available at city hall. Census Report and Housing Report: Staff prepared a summary of the census report information as it was released; and continues to update the information. Page 22 November 22, 2011 Goal Ca ve the Ce itinue Efforts to Ln ro ntral Avenue Corridor 37" and Central: Continue to work with O'Reilly 's on or contracts Parking Ranip: Staff worked with the property owner to secure a loan with CEE for parking light improvements. Aldis: Staff worked to expedite building permits and site plans. Market development /redevelopmeiiI opportunities on City's webpage: The new webpage will have available commercial real estate listed Image Committee: The City's new webpage should go live on November 30 Once the webpage is up and running the Image Committee will regroup and start focusing elsewhere. In addition Staff is initiating a Citizen Academy in January. Goal 4 hn lement the a roved =oals of the Au =ust 2010 City's Com rehensive Plan General Ordinance Amendments: Permits for driveways are ­ drainage is not affected. A liquor license amendment proposal will be discussed at the November EDA meeting. Continue Redevelopment Efforts and Business Development Huset Parka Continue to work with BNC Bank on contract amendments and marketing concepts. Medtronic. Phase 11 of building expansion is complete Root Property: Since the work plan was written new events have taken place with this property and new "goals" have been established for this site. The city is now working on securing a DEED grant to clean up the property. Since the establishment of this work plan this property has gone into tax forfeit. Nawrocki commented that he thought the Board should prioritize these goals and look for reductions in order to lower taxes. Housing Report- The latest information on housing was enclosed in the agenda packet. This report will also be distributed to the School District Superintendent and School Board members. Tailor Shop 42 & Central for Sale (Discussion only)- Walt told members that hene called him to tell him she wanted to sell her home /business located on the 4200 block of Central Avenue. She wondered if the City was interested in purchasing it for $169,000. The Board decided it is not interested at this time. Meeting dates discussion -Clark asked members if they wanted to continue with the short meetings before the City Council work sessions or if they would like to stay with the 4 Tuesday of each month. The consensus was to keep meeting before the work sessions if the agenda is kept short. For longer meetings, a special meeting date will be included in the by -laws for the 4 Tuesday of the month. Motion by Williams, seconded by Schmitt to change the by -laws to reflect the change of meeting dates to the first Monday of the month. All ayes. MOTION PASSED. Other Updates -Clark updated members about the property at 4811 Central Avenue. He told them Mr. BBQ is planning on moving his business into that location. Staff met with the owner and informed him that he will need to re -paint the building, or file for a variance of the Design Guidelines or a site plan review. Given the time of year, he was given till spring to get this taken care of. Staff will monitor the site until that time. Page 23 November 22, 2011 The meeting was adjourned at 9:40 pm. Respectfully submitted, Shelley Hanson Secretary COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: February 6, 2012 AGENDA SECTION: Consent NO: 4 ITEM: Financial Report and Payment of Bills ORIGINATING I EXECUTIVE DEPARTMENT: EDA DIRECTOR APPROVAh, BY: Sheila Cartney BY: DATE: January 31, 2012 BACKGROUND: The Financial Report is for the months of November and December 2011 and Resolution 2012 -01 is attached for approval. RI✓COMMENDATION: Staff will be available to answer questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Report and approve the payment of bills. RECOMMENDED MOTION: Move to waive the reading of Resolution 2012 -01 there being ample copies available to the public. Move to approve Resolution 2012 -01, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for the months of November and December 2012. EDA RESOLUTION 2012 -01 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY APPROVING AND PAYM NTOF BILLS FOR T MONTHS OF NOVEMBER AND DEC MBER 2012. 2012 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 months of November and December 2012 has been reviewed by the EDA Commission; and WHEREAS, the EDA has examined the financial statements 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. 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Q N[tl 1 -1 �> y nx Mm x H N W W O W O O o moo 0000 m00000000Om oo �POOO �POOOo 0 000 0000 00000000000 00 0000 00000 0 000 I O000 00000000000 1 1 1 00 0000 1 00000 I ID ID to ID ID ID o IDOO I 1 0000 ID Ol0000000 olD 1 I 1 I I I oo IDOOO I 1 IDOOOo 1 I I I I I I I 1 I I I I 1 I I I I I I I 1 I I 1 I 1 I I I I I 1 I I I I I I I I 1 I I I I I I I I r y min L' \(n M' rNM \H ONz Moy eNn m 1 -1 b� H J r •• !n NIC � IDm .. y O J H C; 0 I M M IC o I H jJ I m M H 1 M ,T, I Im Qz Ioz m m My 0 Hr O d I m 1 bl "M Iz x In ro 1 C{ (p y ;7 im L¢ I �1 O ri IM � G 1 N N O n 1 Yy 'G 1 UH 2 1 (p IzH xN d xa I ro o ro 0 Q 00 Inm x IMH mo Ime d m lyy n zn IUH w 1 H M Z I u N ro o ,00 - loo Inm mH mM 1 m d i Mn I y Ir I y H Izz I n H Imz I I mH n N H x1 Cn 00 JCI . 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I m N' I xl orr I m ' C• I G li I � lyy �G z n -' IGH R I (D I H;5 3F d x Id m Oro G 00 O O rn S mH wo z PD zo GH W 1 0 I HIC • IzH I G N I b o 0 Ow mH mm 1mu I N I ttl m I y I rl �i I y H n H, n H mZ I (] I I Iro In H n (�] H ul K N 00 tFj x1 m 1 00 JL N ro� M S mm H x H � N W rP IAH3 � .0000000000 00 HN IP HHNN IH,P�.i W rP rP O Ol oo.P O --'` OwwmwcommNNO 000 O O - 01 oo OWwON m N N W HHN HIDN HBO IONWN�000''N m -3J W ]H SON HlO \OON W O o l0 yyo y�00 yNOOOOOOOOO Oo yN l0 y;V �O yNOOO l0 00000000000 W CC C C 0000 l N Ct, C 00000 MOP WOHO nymrn OmHmnEMHCOMO M Jmw wnymn OWAWWOw n XHO i H'sJH ytnCyy HHynly yt Coca J>Wc> HHyIMWHJ 000. y 'dxH AM x ro MDo m n G)M MX 'd0'dH H d(A1 -1'd xy XT E I I I I I ro MnJx xM'L " ".M Hmt ul nJ'Amm MnCyMMM hdUdx MHt9CH MHM MMx ww rU ww HHU H ; www WH C r d r ww C L" -)HUH 7JMm Hrn'w H k R' M y WH y rdy H Hm� -�R+ afeym� -�y r d m MM 1 4 C z C mmW Hzzn m MC M t lC ww l m ro wMa (AlwH MG) My nnoor m (Pawn n Mn My r Mn w xz Mz z 00 O aJr'C MH x ro M Moo o xr xM o IdC zy Oy CHOro C: CMH H "dC C z zcwJ c CMHg Cz C M ',d 1 -IC HZ C: H H Hmn k nC: WI-I H H H H H i -imn H H oom znHn CWH C n M MzOn M 'A wCSd HII n MH nw x MM'A y' -' H yM� y MHz trJ HMM A y yyM3y MHZZ My M M mm Cz4, 21 'Cmro 'C m y m Oronm z A H 0c) >aJ XM ZCyw yx XM. H mWIH CO R' m JWHtof t o fN fl) fk H 'C CMC MC ACHH MC m U On mum M n HOOn M n M n M zx MyM x x mzzx x aJ x C yy m m M y r, myy M y c y M Cx z x H w C J H O w [ H cMn M W M :Z z w M c 0 00o O000 ........... 00 0000 00000 . 0 000 0000 00000000000 00 0000 00000 0 000 0000 00000000000 00 0000 00000 O .0000000000 00 0000 00000 ... 0 000 .... 0000 00000000000 00 0000 00000 O O O O 000 O 000 00 00 0000 00 O 000 O 0000 0 000 0000 00000000000 00 m m 0 000 0000 00000000000 00 w w 0 000 0000 0000000000. Oo moo. m0000 0 000 0000 00000000000 00 0000 00000 0 000 0000 00000000000 00 0000 00000 ,P rP W W m w w o w o 0 o m0 0 0 0 00 moon 000 00 Om o o .Poo o A o 0 00 0 000 0000 00000000000 00 0000 00000 0 000 0000 00000000000 00 000. O0000 r y M C \m Mw C � 'h \H O Oy uy n M H y H Ol C f C .. y 0 mS H xJ C 0 I M 0 IC o (n I M I -] 1b x I M 1my Icz ro I t7 z M I M y H 0 C O d 1 m Iz x 1 n ro 'C 4N 'to yp 1 U1 z p. I M F+ i ;d O rt I M G I d - IS 1 N N On yy G Izn N. I UH a (D H H H F z x u 0 10 o� I 00 C IOO m In x IMH ImM mu z O Iyy C I W I O I H I( ILH d N I 'V o Ioro 100 Inm MIA I I m u I mu MM y� C y H zz it z Q ro I n IH n C H N� N 00 M Cn 00 JCI . C � w NM H 'd y y cl x MM H x H NU] w w o w O o o moo 0000 m000000000m oo moo. mOOOo 0 000 0000 0000000000. Oo 0000 00000 0 000 I 0000 00000000000 I I I 00 0000 I 00000 I Lfl O O � Lfl LD O i000 1 I 1 I I 000. io oi0000000 oio I I I I I I I I I I I I I I I 00 i0000 I I I I I i00000 I I I I I I I I I I I I I I I I I 1 I I 1 I I 1 I I I I I I I I I I I r y M C \m Mw C � 'h \H O Oy uy n M H y H Ol C f C .. y 0 mS H xJ C 0 I M 0 IC o (n I M I -] 1b x I M 1my Icz ro I t7 z M I M y H 0 C O d 1 m Iz x 1 n ro 'C 4N 'to yp 1 U1 z p. I M F+ i ;d O rt I M G I d - IS 1 N N On yy G Izn N. I UH a (D H H H F z x u 0 10 o� I 00 C IOO m In x IMH ImM mu z O Iyy C I W I O I H I( ILH d N I 'V o Ioro 100 Inm MIA I I m u I mu MM y� C y H zz it z Q ro I n IH n C H N� N 00 M Cn 00 JCI . 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At the November 22, 2011 meeting the EDA voted to amend the bylaws to officially change the meeting day and time to the first Monday of the month at 6:30PM with the idea that if a longer agenda is anticipated a special meeting will be called. Resolution 2012 -02 will amend the EDA Bylaws, Article III - Meetings, to read: Section 1. REGULAR MEETINGS. Monthly Meetings will be held on the First Monday of the month at 6:30 p.m. at City Hall. If that date is a legal holiday, in which case the meeting will be held on the next succeeding business day. In the event the date /timehneeting place of a particular meeting must be changed, the Executive Director may make such change deemed necessary by notifying all Commissioners of the revised meeting time and date in accordance with the procedures for a special meeting. Section 3. SPECIAL MEETINGS. Special meetings of the Board of Commissioners may be called by the President, two members of the Board of Commissioners, or the Executive Director for the purpose of transacting any business designated in the call. The call (including location of the meeting) for a special meeting must be delivered to Commissioners at least two days before the meeting, and notice of the meeting must be posted in the Authority's offices at least three days before the meeting. At a special meeting, no business may be considered other than designated in the call, but if all members of the Authority are present at a special meeting any business may be transacted at such special meeting by unanimous vote. If possible, the fourth Tuesday of the month shall be the favorable meeting date. RECOMMENDATION: Approve Bylaw Amendment as proposed. RECOMMENDED MOTION: Motion: Move to waive the reading of Resolution 2012 -02 there being ample copies available to the public. Motion: Move to adopt Resolution 2012 -02, Resolution to Amend and Restate the By -Laws of the Economic Development Authority of Columbia Heights. Attachments: Resolution 2012 -02 EDA ACTION: ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION 2012 -02 RESOLUTION TO AMEND AND RESTATE THE BY -LAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA. WHEREAS, the Amended and Restated Bylaws of the Economic Development Authority (Authority), dated January 25, 2005, Article III - Meetings, the meetings will be held on the Fourth Tuesday of each month at 7:00 p.m. at City Hall, with the exception of the months of January, April, July and October, where the meetings will be held in conjunction with the HRA at Parkview Villa and starting immediately following the HRA meeting.; and WHEREAS, the Amended and Restated Bylaws of the Authority, dated February 6, 2012, Article III- Section I Regular Meetings shall be, the meetings will be held on the First Monday of the month at 6:30 p.m. at City Hall.; and WHEREA, the Amended and Restated Bylaws of the Authority, dated February 6, 2012, Article III — Section 3 Special Meetings shall be, If possible, the fourth Tuesday of the month shall be the favorable meeting date. WHEREAS, the proposed changes to the Bylaws have been reviewed by the Authority Commissioners and Staff and found satisfactory; THEREFORE BE IT RESOLVED that the revised Bylaws of the Economic Development Authority of Columbia Heights, Minnesota were adopted as written. Passed this 6th day of February, 2012. President Shelley Hanson, Secretary COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: February 6, 2012 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO: b DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: REP process — Scattered Site BY: Sheila Cartney BY:�� DATE: January 30, 2012 BACKGROUND: In 2009, the EDA directed staff to implement all necessary steps to create a Scattered Site Housing District. This district includes 23 parcels with the majority being owned by the City. The increment from this district will replenish the old C8 Redevelopment district (the original source for the scattered site) to allow the city to have additional funds for housing activities. At the November 22, 2011 EDA meeting staff was directed to draft an REP for development of three to four lots. The RFP process as drafted will include Program Guidelines, a cover letter for each property and an application. The cover letter and application will be tailored to the specific lot. The Program Guidelines are the same for all Scattered Site lots and each proposal will need EDA approval. As drafted the proposals will show a drawing on the lot of what the builder would do there and once the builder is selected by the EDA then detailed drawings would be submitted for approval. In addition, of the EDA approves the Guidelines staff will have the FDA's Attorney review and will modify as necessary. If the RFP process does not provide sufficient candidates staff will relist the properties to the open market and take proposals on a first come first serve basis. RR COMMENDATION: Staff recommends approving the RFP and process as presented. Motion: Move to approve the RFP Guidelines and process for the sale of Scattered Site lots. 7 Attachments: Letter, application, Guidelines. EDA ACTION: CITY OF COLUMBIA HEIGHTS 590 40 "' Avenue NE, Columbia Heights, MN 55421 -3878 (763)706 -3600 TDD (763) 706 -3692 Visit ma'rvebsite nC rrrvw ci wG++nRin- l+eiehta• mu.rss 2012 Request for Proposals (RFP) — Scattered Site 4303 Reservoir Blvd Minimum Lot Price $50,000 The Economic Development Authority (EDA) of the City of Columbia Heights is requesting proposals from builders to purchase the vacant residential lot at 4303 Reservoir Blvd for construction of a new single family house. Enclosed please find the proposal application and Guidelines. To receive consideration, proposals must be submitted by to the Community Development Department at 590 40 Ave NE Columbia Heights MN 55421. If you have any questions about the RFP process or enclosed Guidelines, feel free to call me at 763 - 706 -3675 or Sheila cartrlev a ci columbia- heights.mn.us thank you for your interest. Sincerely, Mayor Omy 1.. Pelerson corn edlmem6ers Rnherl A. IVUlinnx, 13r ace Nmrrock, '1•a"onm, Dlehrn 1) na Sc'hmill City M1Lumgcr Il+aher R. Fell-11 Sheila Cartney Assistant Community Development Director C� 2012 Scattered Site Application Form Proposal to the Economic Development Authority of the City of Columbia Heights 4303 Reservoir Blvd AUDITORS SUBDIVISION OF WAL"I'ONS SECOND SUBDIVISION LOT 4 BLK 4 AUD SUB OF WALTONS SEC SUBDIV (SUBJ TO AN EASE TO CITY OF COL I -ITS FOR WATER MAIN OVER THE ELY 8 FT TI- IEREOF) Lot Size: 17,100 Square Feet Builder offers $ for this lot (EDA's minimum price is $50,000) Builder: (Builder is required to be a Residential Building Contractor licensed by the State of Minnesota) State License # Phone# Fax: City /State /Zip: This proposal is not a purchase agreement or other binding contract. At this time the Builder is submitting a proposal to purchase this lot and build a new single family house in accordance with the Program Guidelines. If this proposal is tentatively accepted by the EDA, staff will work with the Builder to determine the specific house plan and present it at the next EDA meeting. If the EDA gives final approval at that time, the Builder would sign a Purchase and Redevelopment Agreement and provide $2,000 earnest money for the lot. Only after such an Agreement is signed would a binding contract exist between the EDA and the Builder. Required Attachments and Additional Information: ❑ Attach one representative example of a house you would plan to build on this lot if your proposal is selected. The plan does not need to show exactly how it would be placed on the lot only an illustration ipate and how it would meet the showing the approximate size, quality and features you would antic EDA's Guidelines. A specific house plan would be determined after a proposal is tentatively accepted by the FDA. ❑The EDA will only sell lots to Builders who have experience in house construction in Minnesota. Please list the addresses of three houses you have built in Minnesota within the last five years. All items listed in Application Requirements in the Guidelines should be attached. House #I House #2 House #3 Submit Proposal To: Community Development I Attn: Sheila Cartney 590 40 Ave NE I Columbia Heights MN 55421 Proposals are due 4:OOpm . on ... .... .. I January 25, 2012 Table of Contents ProgramObjectives ............................................... ..............................3 Application Requirements .................................... .............................. Builder Selection Criteria ........................................ ............................ -4 House Design and Site Development Requirements ......................4 -5 City Review Procedure ........................................... .............................. LotSale ...................................................................... .............................. Building Permit Process ..................................... . .................................. 5 -6 DataPrivacy .............................................................. .............................. Note: The EDA does not pay Broker or Finders Commissions. 2 This document is a guidance tool for this program and is not a contractual agreement. The Columbia Heights Economic Development Authority (EDA) may modify or divert from these guidelines at their discretion. Program Objectives 1. To remove substandard, functionally obsolete housing on scattered sites throughout the City and replace with new, higher - valued housing. 2. To eliminate blighting influence of substandard housing, thus improving residential neighborhoods. 3. To alleviate the shortage of housing choices for families, 4. To facilitate the construction of larger, owner- occupied homes designed for families. These objectives will be achieved through the sale of the lots by the EDA to builder /buyer teams for the development of newly constructed homes. Application Requirements The following must be submitted for application to the program: 1. Application form. 2. Representative example of a house you would build on the lot a. Approximate size b. Approximate location c. Quality and features you would anticipate on this lot d. A specific house plan would be determined after a proposal is tentatively accepted by the EDA. 3. Examples of other houses you have built in Minnesota. 4. Sample of construction timeline. 5. Financial capability statement. Builder Selection Criteria 1. Licensed as a Residential Building Contractor by the State of Minnesota. Proposals submitted by parties not licensed as a contracted will not be considered by the EDA. 2. Provide proof of Builders risk, comprehensive general liability, and worker's compensation insurance coverage, if requested by the EDA. 3. Provide references from previous customers, suppliers and inspectors, if requested by the EDA. K3 4. Be capable of closing on the lot purchase(s) within two months of the EDA approving the purchase agreement. 5. Show financial capability to complete the home construction through a line of credit, construction loan etc. 6. Be capable of completing the house construction within one year of the sale of the lot. House Design and Site Development Requirements The development of all these sites is subject to the City of Columbia Heights Zoning Code and the development criteria below, as reviewed and approved by the EDA. Housing design is a significant element to this program. The design requirements were created to respond to specific concerns of the EDA and to build homes that blend in with the surrounding neighborhood. A. New House Standards a. Minimum house size is 1,020 square feet b. New dwellings must be owner - occupied c, Three finished bedrooms are required d. One and one half bathrooms are required e. Minimum of a two -stall garage is required 20'x20' f. A full basement is required, unless the selected design is a split - level. g. Exterior materials shall be low maintenance, the use of brick, stone and /or stucco is encouraged. h. Principal structure setbacks are as follows: front setback is 25 feet, side setback is 5 feet, corner side setback is 10 feet and rear setback is 20% of lot depth. i. All houses must meet or exceed Minnesota Energy Code requirements j. Houses must present a balanced distribution of wall, door and window area from all views. B. Site Standards a. After construction the site must be fully landscaped. The entire grounds shall be landscaped and be aesthetically pleasing in all seasons. To the greatest extent possible, existing trees should be preserved. Any trees removed must be replaced and should be shown on a landscape plan. 9 b. Site drainage shall be approved by the City Engineer. Neighboring properties must not be affected by creation of drainage swales. All drainage should be accommodated on site so that water is directed away from the new house and neighboring properties. c. All air conditioning units must be located in the backyard, unless otherwise approved by the EDA. d. A hard surface driveway is required to the garage. The driveway shall be accessed from the alley when applicable. e. Lot coverage is determined by the zoning ordinance. EDA Review Process 1. Applicant submits application and drawings by to EDA staff. 2. EDA staff presents all applications to the EDA at the meeting. 3. At the EDA builder selection is made. Once a proposal is accepted, EDA staff will work with the builder to prepare detailed house plans for the lot. The EDA has total discretion regarding whether to reject or accept a proposal, The EDA sets a public hearing date. 4. At its next meeting the EDA holds a public hearing and consider a resolution authorizing the sale of the lot to the builder for construction of the house shown in the detailed plans. 5. No later than 10 days after the public hearing, the builder must sign a purchase and redevelopment agreement and pay $2,000 nonrefundable earnest money for the lot. 6. No later than two months after signing the purchase agreement, the builder must close on the sale of the lot. 7. No later than one year after closing the builder must complete the house. Lot Sale 1. The EDA will prepare all statements, affidavits, documents and general release forms required for closing. 2. The EDA conveys the property to the builder by Quit Claim Deed. 3. At closing the builder will provide the EDA a Letter of Credit or cash escrow for $10,000. 4. Upon completion of the project, the Letter of Credit or cash escrow is released to the builder. A Certificate of Completion is executed by the EDA. 5 Building Permit Process 1. A building permit application is required with two full plan sets 2. Two site plan /surveys are required along with building elevations, drainage patterns and easements, floor plan, cross sections and energy calculations. 3. Separate mechanical, plumbing, electrical, water and sewer permits are required. 4. The builder may apply for the building permit once the redevelopment agreement has been signed, but the permit will not be issued until a successful closing has taken place. 5. Questions regarding building permit forms, fees, inspections, plans etc. should be directed to the Community Development Department 763 -736- 3678. The Building Official and EDA staff will review all plans for conformance to these guidelines as approved by the EDA. Data Privacy 1. All information secured through the program is subject to the Data Privacy Act. 1.1 Administrative Report 1 MEMORANDUM To: Mayor and City Council / Walt Fehst City Manager /� f From: Scott Clark, Community Development Director Date: January 11, 2012 Re: Community Development Steering Committee An important element in regulatory control is to periodically review various Ordinances that the City has put into place to determine if they are meeting the original objectives, if they can be effectively and equitably administered and whether modifications are needed based upon new conditions. The need for this review has been discussed at various City Council and EDA meetings, including the need to broaden the scope of discussions to involve the business community. Attached is a memorandum dated December 6, 2011 from Jeff Sargent that outlines the concept of the formation of a Community Development Steering Committee. As a start, staff would like to have as their subject matter a relook at the Sign Ordinance and the Design Guidelines. The concept would be to us this group as a "think tank" with their recommendations going back to the Planning Commission and then on to the City Council. As such, staff views that this would not have to be a formally recognized group (meaning Council approved) but to be informally organized and then be facilitated through our Department. Obviously, as a start, we would like the recommendations from the Council regarding business owners or residents that you would like us to contact, to see if they would like to participate (and per the memorandum we would like a "volunteer" from the Council). As Director, I view that this type of Steering Committee has broad value and that there could be a number of community discussion points that they could become involved in, on an advisory level. One of the goals of the EDA is to increase community involvement and this seems to meet that definition in a very beneficial way. Staff would like a response from the Council regarding participant recommendations as soon as possible as we would like to get this group underway. I will also highlight this approach again at the EDA meeting in February and stand for any questions. As usual, if you have questions please call me at 763.706.3672. • To: Scott Clark From: Jeff Sargent Date: December 6, 2011 Re: Community Development Steering Committee Proposal. At the November 14, 2011 City Council Meeting, the City Council directed staff to look at bringing LED signage issues to the forefront by updating the Sign Code. City Council members felt a need to include the business community in an effort to get a professional perspective on the most effective way to allow LED signs in the city. Staff has also identified the need to review the Design Guidelines due to various issues as outlined in the Purpose section below. Staff's proposal is the formation of a Community Development Steering Committee ( "Committee'), whose function would be to review various aspects of the Sign Code and Zoning Code to determine whether changes to either are warranted. Initially, the Committee would review specific areas of the Sign Code and Design Guidelines. Once this has occurred, the role of the Committee would be to act as a sounding board for other possible Community Development - related issues, including a review of the Zoning Code in its entirety. Members. Members of the Committee would comprise of people from various entities, including the City Council, Planning Commission, Staff and business owners. The group would be relatively small and would be made up of: 1 City Council Member 1 Planning Commission Member 1 Staff Members 3 Business Owners 1 Resident Purpose. Initially, the City Council approved an ordinance allowing LED signage in August, 2008. Since then, the LED ordinance has been amended to allow for bigger signs and more frequent display intervals. Given today's technology and the fact that these types of signs seem to be the future of signage, the regulations for LED signs should be further examined. In general, all signage along Central Avenue has always been an issue for businesses. The older pylon signs mixed with the newer monument style signs create a cluttering of different types and sizes of signs along the corridor. This is unsightly and also creates sightline problems for motorists trying to locate a business. The fact that the rights -of -way along Central Avenue vary in width and that the speed changes as one enters the Downtown area adds to the signage conundrum. In the Downtown, the names of businesses close to the street have a difficult time being seen without the aid of freestanding signage. Staff has already amended the Sign Code in respect to achieving a more uniform and equitable solution to "problems" that have presented themselves, but a more thorough review of this document is needed in order to determine whether a complete overhaul is necessary. The Design Guidelines were established in September of 2003 in order to guide developers and business owners wishing to improve, expand, renovate, or proposing new building or parking construction. The City has always intended that the guidelines be mandatory, however it was understood that there may be many ways to achieve similar design objectives through alternative approaches. The Design Guidelines govern construction activity along both 40`" Avenue and Central Avenue. Since the implementation of the Design Guidelines, many new buildings have either been renovated or constructed in the Design Guideline Overlay Districts, with a majority needing minor deviations from the required standards. There are also aspects of the Design Guidelines that regulate activities that do not require building permits, such as the exterior painting of buildings. This makes enforcement of the Guidelines difficult. Since the City now has over 8 years of experience in the implementation of the Design Guidelines, it makes sense to review the Guidelines to ensure that the regulations set therein are still applicable to today's expectations. The initial task of the Committee, therefore, would be an extensive review of the Sign Code and Design Guidelines to determine whether these articles are still relevant in today's society. If it is determined that changes to these documents need be made, the Committee would be in charge of overseeing such changes with suggestions and recommendations to the City Staff, who would then forward the recommendations to the Planning Commission and City Council. Benefits. Implementing a Community Development Steering Committee has many benefits. First, the group will operate as a sounding board for the community. Instead of Staff making a unilateral Community Development recommendation, the Committee would make recommendations using input from the business, public, residential and governmental perspectives. This leads to a more powerful support of recommended actions. Second, make- up of the Committee members would help bridge the gap between the public and private sectors, making the decision - making process more transparent. Last, the Committee would promote community engagement in key decision - making processes conducted at the government level. It is hopeful that this Committee would be able to make way for others of its kind. Time Commitment. It is anticipated that there would be no more than 4 -5 sessions needed to look at and possibly recommend changes to the Sign Code and Design Guidelines. Each session would be no more than 1 hour in length and could meet as frequently as desired to meet the Committee's objectives. Being that there business people are associated with this Committee, the meetings would most likely take place in the morning hours. Community Development Department 2012 -2013 Work Plan Overall Goals: 1) Reenergize the private market's interest on unsuccessful projects 2) Establish marketing techniques to increase sales of vacant commercial buildings 3) Increased community building and community participation 4) Maintain residential neighborhood health and safety 5) Sale of Parkview Villa North and South 6) Assess financial obligations and new sources of income 7) Maintain existing service levels within the Department 8) Maintain and increase the viability of the City's commercial businesses 9) Examine future potential redevelopment sites per policies within the Comprehensive Plan 1) Reenergize the private market's interest on unsuccessful projects: • Meet with individual owners to discuss alternative project plans • Meet with developers to promote various sites • Develop alternative land uses for various sites • Place marketing material for sites on City's Website • Implement DEED grant on Root Property o After completion of DEED, apply for second round clean -up funds • Review future land disposition policy regarding Burger King and 40 and Jackson lots • Research other funding opportunities for these sites 2) Establish marketing techniques to increase sales of vacant commercial buildings: • Apply for CDBG funds to create a business loan pool • Use the City's website to promote properties for lease and alternative financing sources, eg. Minnesota Investment Fund 3) Increased community building and community participation • Implement a Citizens Academy • Explore Social media outlets • Create Community Resource Fair • Create Home improvement Fair • Establish next marketing steps with the City's Image Committee 4) Maintain residential neighborhood health and safety e Develop and implement Scattered Site lot sales • Continue the objectives of the SNAP program • Examine if other neighborhoods can benefit from SNAP procedures • Review existing policies of the deferred loan and rebate programs • Continue to monitor foreclosures • Continue implementation of vacant and abandoned housing program and first time rental inspections • Explore rental rehab programs • Continue community gardens program 5) Sale of Parkview Villa North and South • Negotiation of the sale of the two assets including funding options, SAC process and transition • Final termination and transition of CommonBond to new management group • Policy determination regarding use of proceeds 6) Assess financial obligations and new sources of income • Develop parking lot report specific to future revenue needs • Reconsider Anoka County 5 year Levy 2013 -2017 • Annual review and implementation of New Perspective abatement • Annual review of Huset Park regarding bonds and promissory note and payments • Conduct an extensive internet search for community development related grants • Review all redevelopment funds and develop finalizations strategies • Review Make Heights Your Home and possibly amend allocation • Renegotiate 40 and VanBuren parking Ramp agreement with Fairview 7) Maintain existing service levels within the Department • Creating a Community Development Committee, with the City's design guidelines and sign ordinance review as a first task • Review options to outsource building and planning • Developing a report on overall code enforcement services • Develop a scanning policy and procedure for the Department 8) Maintain and increase the viability of the City's commercial businesses 6 Create and implement Business Registration Certification program i Business Newsletter • Develop business outreach center • Attend monthly Business Association meetings • Monitor various Central Corridor study groups • Participate with the Police Department in the Business Watch program • Maintain a Business Directory on the Website • Feature a "Business Profile" in the City's Newsletter • Investigate Northeast Minneapolis successes and its' applicability to Columbia Heights 9) Examine future potential redevelopment sites per policies within the Comprehensive Plan • Contact property owners regarding future reinvestment plans