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HomeMy WebLinkAboutEDA AGN 08-06-12AGENDA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Monday August 6, 2012 City I1all, Conference room I 1. Call to Order /Roll Call Gary L. Peterson, President Donna Schmitt, Vice President Bruce Nawrocki, Secretary /Trasurer 2. Pledge of Allegiance Bobby Williams Tammera Diehm Gerry Herringer Marlaine Szurek CONSENTAGENDA 3. Approve Minutes of Special meeting May 7, 2012 and Executive Session May 7, 2012 a. Approve financial report and payment of bills for April and May 2012 on Resolution 2012 -09. Motion: Move to waive the readings of Resolution 2012 -09 to approve Consent agenda as presented. BUSINESS ITEMS 4. General Discussion with Coventry for assisted living proposal at 370i and University 5. Resolution 2012 -10 HRA Levy Budget Motion: Move to waive the reading of Resolution 2012 -10 there being ample amount of copies available to the public. Motion: Move to adopt Resolution 2012 -10, Authorizing the Levy of a Special Benefit Levy Pursuant to Minnesota State Statutes, Section 469.033, Subdivision 6 and Approval of a Budget for Fiscal year 2013. 6. Resolution 2012 -11 EDA Levy Budget Motion: Move to waive the reading of Resolution 2012 -11 there being ample amount of copies available to the public. Motion: Move to adopt Resolution 2012 -11 Resolution of the Economic Development Authority in and for Columbia Heights EDA adopting the 2013 budget and setting the EDA Levy. 7. Resolution 2012 -12 Approving funding for the Single Family Deferred Loan Program Motion: Move to waive the reading of Resolution 2012 -12 there being ample copies available to the public. Motion: Move to adopt Resolution 2012 -12, approving funding for the Single Family Deferred Loan Program in the amount of $35,000 from fund 420 - Capital Improvement Development Fund. 8. Scattered Site Update /Direction 9. Anoka County Tax Levy 10. 828 400i Tax Exemption Status 11. Administrative Report 12. Adjourn The next regular GDA meeting will be Tuesday September 4, 2012 at City Hall. FDA Mimaes Page I May 7, 2012 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF MAY 7, 2012 IN CONFERENCE ROOM 1 The meeting was called to order at 6:30 pm by Chair Peterson. Members Present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, Bobby Williams, Gerry Herringer, Marlaine Szurek, and Tammera Dichm. Staff Present: Walt Fehst, Scott Clark, and Sheila Cartney. 2. PLEDGE OF ALLEGIANCE- RECITED EXECUTIVE SESSION The meeting adjourned to an Executive Session to discuss the acquisition of 3927 Central Avenue. The meeting re- convened at 6:40pm. 3. CONSENT ITEMS 1. Approve the Minutes from April 2, 2012 and from the Executive Session of April 2, 2012. 2. Approve the Financial Report and Payment of Bills for March 2012 on Resolution 2012 -05. 3, Bylaw Amendment - Resolution 2012 -06, Remove from Section 3 "but if all members of the Authority are present at a special meeting any business may be transacted as such special meeting by unanimous vote ". Questions from members: Nawrocki questioned the $730.56 payment to Christina Meier and what the overtime charges are for. Cartney explained the payment to Meier was for a Rebate and Clark explained that the overtime charges is for the Commission secretary as she is not a salaried employee. Herringer questioned the credit card charges, Cartney explained that one charge was for the notary stamp for Shelley and the other charge was for miscellaneous office supplies and items for the Citizens Academy. FDA Minutes Page 2 May 7, 2012 Motion by Bobby Williams, seconded by Donna Schmitt, to naive the reading of'Resolution 2012 -05 & 2012 -06, there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Bobby Williams, seconded by Donna Schmitt, to approve the minutes and adopt Resolutions 2012 -05 & 2012 -06. All ayes. MOTION PASSED. EDA RESOLUTION 2012 -05 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR MARCH, 2012 AND PAYMENT OF BILLS FOR THE MONTH OF MARCH, 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 FDA'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 March 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 fiords; and GDA Minutes Page 3 May 7, 2012 BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this 7th Day of May, 2012 MOTION BY: Bobby Williams SECONDED BY: Donna Schmitt AYES: All ayes Gary Peterson, President Attest By: Shelley Hanson, Secretary ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION 2012 -06 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 Authority, dated February 6, 2012, Article III - Section 1 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 Article III — Section 3 Special Meetings shall be, If possible, the fourth Tuesday of the month shall be the favorable meeting date, AND WHEREAS, the Amended and Restated Bylaws of the Authority, dated May 7, 2012, Article III — Sectiou 3. At a special meeting, no business may be considered other than designated in the call. And WHEREAS, the proposed changes to the Bylaws have been reviewed by the Authority Commissioners and Staff and found satisfactory; TIIEREFORE BE IT RESOLVED that the revised Bylaws of the Economic Development Authority of Columbia Heights, Minnesota were adopted as written. Passed this 7th day of May, 2012, President Shelley Hanson, Secretary EDA Minutes Page 4 May 7, 2012 BUSINESS ITEMS 4. RESOLUTION 2012 -08 APPROVE PURCIIASE AGREEMENT WITH MADY FOSS PARTNERSHIP FOR 3927 CENTRAL AVE Clark explained that on March 29, 2012 the EDA approved a commercial letter of intent with Mady Foss Partnership for the purchase of 3927 Central Ave. North. This action triggered staff to negotiate a formal purchase agreement and the attached document mirrors the financial considerations stated in the letter of intent. The only new and substantive issue that has arisen was a disclosure that the Mady Foss Partnership has a minority partner who is Gem Properties, the owner of the real estate at 3901 Central Ave. that leases to Columbia Heights Rental (the owners of the rental company are the same partners comprising Gem Properties). Gem Properties is in agreement with the financial aspects of the deal but has concerns over the existing rental operation and what happens if this property is not purchased in the future as part of an overall redevelopment plan. As such, an approved letter of understanding between the EDA and Gem Properties regarding various issues is part of the requirements of the Purchase Agreement (Section 9.G ). The letter of understanding states that until one of two considerations occur (either the purchase of the Gem Properties or an approved City Council site plan for the development of the FDA's property) the EDA, if they choose, will not construct a fence or barrier within 15ft of Gem Properties north property line. The second requirement is that if the EDA approves a site plan which excludes the Gem property site, a 2511. shared driveway access easement will be granted on both the north and east property line. The following motion seeks approval on the purchase of 3927 Central Ave. in the amount of $925,000 plus additional considerations. In addition, motions include hiring of various professional services, authorizing the initiation of demolition bids and action on the letter of intent. Staff reviewed the professional services contracts at the meeting. Lastly, as stated in previous meetings, approximately $575,000 from the Anoka County Levy will be used for the acquisition (this is the amount of unobligated funds for fiscal year 2008 -2012) with the remaining revenue coming from fund 420. Staff will prepare a resolution for the City Council meeting of May 14t" regarding the same. Staff recommends approving the Purchase Agreement, Resolution 2012 -08 and the Letter of Understanding. Questions /comments from members: Nawrocki questioned if the Attorney read the agreement, Clark stated that the attorney is the one that drafted the agreement. Nawrocki stated that we keep saying the cost is $925,000 but the costs are higher. Clark responded that the purchase price is $925,000 and the overall project cost is close to $1,150,000 to $1,200,000. Nawrocki questioned what the county values were and then read the values from a sheet of paper and said the values are decreasing. Fehst again clarified that we are paying $925,000 for the property. Nawrocki wanted the record to show what the additional costs are. As estimated by staff the additional costs are demolition $100,000, taxes $28,000, Relocation EDA Minutes Page 5 May 7, 2012 $70,000, Professional Services $50,000. It was noted that the specific costs were listed in the April 2, 2012 Staff report. Nawrocki brought up contamination issues on the site and that we are paying too much for the property. He questioned Columbia Heights Rental (CHR) using 39s' Avenue as an access and asked if CHR will enter into a rental agreement to use the access. Clark stated we are proposing an access agreement not a rental agreement and CHR mows the grass in the back and removes snow from the sidewalk in front of the Mady's property. Gary Peterson stated that the EDA wants the property because of the condition it is in and it is the right time to buy it. Gerry Herringer asked what the plan was after demolition? Clark responded that demolition would most likely happen in August and we would leave the majority of the black top in place because of the environmental. Nawrocki asked again what the costs are associated with the purchase, Clark addressed the costs. Nawrocki questioned the fund balance of 420 and Clark stated there was about $2 million. Clark explained how environmental clean -up works with redevelopment sites (grants etc). Nawrocki stated that fund 420 doesn't have anything budgeted for this purchase and Clark explained that Fund 420 doesn't have budgeted items and the EDA and City approve expenditures on a case by case scenario. Herringer requested we add a first right of refusal to the purchase agreement with CHR. Schmitt asked CHR what their future plans were. Mark Moser with CHR responded that they intend to stay at 39 °1 and Central for as long as possible and if they do move they would prefer to stay on Central Avenue. Nawrocki stated he is voting no because the purchase price is way too much. Peterson said he is voting yes for the good of the community. Nawrocki again questioned why we are giving CHR access to 39 °i and Clark explained the agreement to him again. Peterson commented on how CHR has been in our town for 16 years and is a nice business always has been if we purchase this property we aren't going to use our power to squeeze them we will be a good neighbor. Peterson feels bad about the limbo we have caused them in the past and hopes to have a good partnership. Motion by Bobby Williams, seconded by Marlaine Szurek, to waive the reading of Resolution 2012- 08 there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Bobby Williams, seconded by Marlaine Szurek, to Adopt Resolution 2012 -08, Approving Purchase Agreement dated May 7, 2012 by and between Mady -Foss Partnership and the Economic Development Authority for property located at 3927 Central Ave. Roll Call: ayes- Diehm, Szurek, Peterson, Herringer, Williams Nays Schmitt and Nawrocki Motion Passes 5 -2 Motion by Marlaine Szurek, seconded by Donna Schmitt, to Approve a Letter of Understanding dated May 7, 2012 by and between the Economic Development Authority and Gem Properties, LLC and Columbia Heights, Inc. Roll Call: ayes- Schmitt, Diehm, Szurek, Peterson, Herringer, Williams Nays: Nawrocki Motion Passes 6 -1 EDA Resolution 2012 -08 A Resolution Approving Purchase Agreement Dated May 7, 2012 by and between Mady -Foss Partnership and the City of Columbia Height's Economic Development Authority For Property Located at 3927 Central Ave. EDA Minutes Page 6 May 7, 2012 WHEREAS, the City of Columbia Heights' August 2010 Comprehensive Plan has identified the site as a key redevelopment site, and WHEREAS, Anoka County levy funds will be used as part of this acquisition as well as fund 420, the Housing Maintenance fun both funds being used for redevelopment throughout the city, and WHEREAS, the City has endeavored for many years to acquire the subject parcel to allow a major redevelopment in the City's downtown area, and WHEREAS, evidence of the desire to acquire this property has been evidenced by the acquisition of an adjacent parcel and extensive environmental investigation work that has been completed on the subject and area parcels, and WHEREAS, representatives from the Mady -Foss Partnership prepared an initial commercial letter of intent offering dated March 18, 2012 in the amount of $925,000 plus additional considerations, and WHEREAS, after extensive discussions the Economic Development Authority was of the opinion that the acquisition of the subject parcel met the City's goals and objectives, and WHEREAS, the majority of Economic Development Coin missioners agrees to the purchase price of $925,000 in addition to other considerations and recognizes the various professional services necessary to complete this transaction, NOWTHEREFORE BE IT RESOLVED, The City of Columbia Heights' Economic Development authorizes the following: 1) Authorizing the President and Executive Director of the Economic Development Authority to Sign Purchase Agreement Date May 7, 2012 by and between Mady -Foss Partnership and the Economic Development Authority, 2) Authorizing staff to commence with demolition bidding with the understanding that final bids will be approved by either the Economic Development Authority or the City Council. 3) Hiring title work and closing, relocation and surveying professional services work respectively to Old Republic "fide, Wilson Development Services and Kurth Survey and Engineering. Passed this 7a' day of May 2012. Roll Call: Offered by: Aye: Nay: President Walter Fehst, Executive Director INSERT LETTER OF UNDERSTANDING HDA Minutes Page 7 May 7, 2012 5. RESOLUTION 2012 -7 APPROVING FUNDING FOR THE REHAB INCENTIVE PROGRAM Staff requests that the Columbia Heights Economic Development Authority (EDA) authorize $50,000 of funding for the Columbia Heights Rehab Incentive Program. This program is included in the Housing Maintenance Plan 2008 — 2017, approved by the EDA on August 18, 2007. There is still $6,160.49 left over from the 2011 allocation which would accommodate about 6 more rebates. The $50,000 allocation typically lasts for 18 months. Between 2011 and 2012 $50,641 in rebates were issued and $427,705 in improvements have been done as part of this program. Rehab Incentive Program The Columbia Heights Rehab Incentive Program is designed to assist homeowners in the City in maintaining and improving their homes by providing a rebate to homeowners after an improvement has been completed. The upgrades foster a stabilization and revitalization of the City's housing stock. Homeowners of single - family or owner - occupied duplexes with a household income at 115% of the area median income or less are eligible to apply. Calculated as a percentage of total construction costs, a rebate payment of 10 %, 12% or 15% may be granted, up to $3,000. Examples of eligible improvements include repairing or replacing dilapidated porches, roofs, retaining walls, siding, exterior steps or railings and heating, plumbing or electrical systems. Staff recommends the EDA fund the Rehabilitation Incentive Program in the amount of $50,000 from Fund 420— Capital Improvement Development Fund. Questions from members: Nawrocki asked what fund was being used. Cartney responded 420. He then asked how much was spent in 2011 and Cartney responded $40,357. Szurek asked what the median income in Columbia Heights is and Cartney responded that she estimates around $45,000, but our program uses the area median income for the county and the maximum is around $92,000. Herringer questioned how the program worked and Cartney reviewed the application process. EDA Minutes Page A May 7, 2012 Motion by Bobby Williams, seconded by Marlaine Szurek, to waive the reading of Resolution 2012 -07, there being an ample amount of copies available. All ayes. MOTION PASSED. Motion by Bobby Williams, seconded by Marlaine Szurek, to Adopt Resolution 2012 -07, a Resolution APProving funding,for the Rehab Incentive Program in the amount of $50,000 from Fund 420 — Capital Improvement Development Fund. Nawrocki made a motion to amend this motion to change the amount to $30,000 Herringer seconded the motion. Roll Call to the amended motion: Ayes: Herringer and Nawrocki. Nayes Schmitt, Diehm, Szurek, Peterson, Williams, Amendment failed. Roll call on original motion All Ayes Motion Passed. EDA RESOLUTION NO. 2012 -07 A RESOLUTION APPROVING FUNDING FOR THE REHAB INCENTIVE PROGRAM ($50,000) WHEREAS, since 2007 the Economic Development Authority (EDA) has provided the Rehab Incentive Program to residents of the City of Columbia Heights, and WHEREAS, the Columbia Heights EDA through its Comprehensive Plan has established as a goal the preservation of the single - family housing stock. WHEREAS, the EDA approved the Housing Maintenance Plan 2008 -2017 to improve and maintain the residential homestead housing stock. WHEREAS, this resolution seeks to authorize and provide additional fiords for the continuation of the City's Rehabilitation Incentive Program to be administered by the City, NOW THEREFORE BE IT RESOLVED THEREFORE, BE IT RESOLVED, that the EDA allocates $50,000 for the Rehab Incentive Program from Fund 420 — Capital Improvement Development Fund. Passed this 7th day of May, 2012. President Walter Fehst, Executive Director 5. ADMINISTRATIVE REPORTS There were no farther reports. LDA Minutes Page 9 May 7, 2012 The next regular EDA meeting will be Monday, June 4, 2012 at City Hall. The meeting was adjourned at 7:51 pin. Respectfully submitted, Sheila Ca•tney Acting Secretary COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 6, 2012 AGENDA SECTION: Consent ORIGINATING EXECUTIVE NO: 3a DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Sheila Cartney BY: DATE: July 17, 2012 BACKGROUND: The Financial Reports are for the month of April and May 2012 and Resolution 2012 -09 is attached for approval. RECOMMENDATION: Staff will be available to answer questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Reports and approve the payment of bills. RECOMMENDED MOTION: Move to waive the reading of Resolution 2012 -09 there being ample copies available to the public. Move to approve Resolution 2012 -09, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statements and Payment of Bills for the month of April and May 2012. ana t,manctai EDA ACTION: EDA RESOLUTION 2012 -09 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENTs FOR APRIL AND MAY 2012 AND PAYMENT OF BILLS FOR THE MONTHS OF APRIL AND MAY 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 April and May 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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The FDA's role in this is that the subject property parcels are under the "Huset Park Redevelopment Agreement" which specifically calls for 183 units of owner occupied condominiums or cooperative units, plus 11,600 sq. of retail. If this project proceeds a formal amendment to the Agreement would have to be made in addition to the normal land use permitting process through the Planning Commission and City Council. Mr. Jesh will also have at the meeting a representative from Ebenezer Management and their architect. It is staffs' understanding that this company started with a retrofit building in Mahtomedi, and is under construction with a new facility in Maplewood, and will be breaking ground in late summer in Mounds View. RECOMMENDATION: None RECOMMENDED MOTION: No formal motion F�� 1" 11f1111 Avea � 7 t^ ZO > OO 0 M 0 0 Z A a; T U) E 0 it 11f1111 Avea � 7 t^ ZO > OO 0 M 0 0 Z A a; T U) E 0 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meetin g of: August 6, 2012 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE No: 5&6 DEPAR'T'MENT: EDA DIRECTOR APPROVAL ITEM: 2013 Budget —EDA and HRA Levy BY: Scott Clark BY: DATE: July 25, 2012 BACKGROUND: Attached is the 2013 budget for all of the Community Development Department. Although some of the Department's budget (fund 20 1) is not controlled by the EDA, the EDA traditionally reviews and acts on this budget as a whole which is in turn, finalized by the City Council. The actual EDA portion of the budget is fund 204 and the attached resolutions serve as 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, and expenditures (combining fiord 201 and 204) have been reduced by 2.6% comparing 2012 to 2013. This year's budget highlights are as follows: The 2012 HRA levy (called statutorily a special benefits levy), is driven by a State formula using the City's market value, has been reduced by $8,553 from $218,343 to $209,790. The EDA traditionally maximizes the HRA levy as budget revenue, and the aforementioned reduction is due to market value reductions. The EDA levy (under separate resolution) has been maintained at prior year levels equaling $84,811. The reduction in the HRA levy, coupled with the EDA levy and one quarter only of Parkview administration revenue ($9,250) almost balances the fund 204 expenditures. The anticipated $20,209 expenditure over revenue difference, if realized, will be made up by fund 204 fund balance. Fund 201 (Protective Inspections which includes building inspections and planning) has a proposed shortfall of $69,049. The difference will be made up by existing fund balances in Fund 201. The aforementioned loss is a projected worst case scenario and one or two unanticipated projects in 2013 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 operating losses and the fund is replenished in years when revenues exceeds expenditures. RECOMMENDATION: Staff recommends the Levy's as recommended. RECOMMENDED MOTION: Motion: Move to waive the reading of Resolutions 2012 -10 and 2012-11 there being ample copies available to the public. Motion: Move to approve Resolution 2012 -10, Resolution Authorizing the Levy of Special Benefit Levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6 and Approval of a Budget for Fiscal year 2013. Motion: Move to approve Resolution 2012 -11, Resolution of the Economic Development Authority (EDA) in and for Columbia Heights Adopting the 2013 budget and setting the EDA Levy. Attachments: Resolution 2012 -10, 2012 -11 and Revenue and Expenditures fot funds 201 and 204 EDA ACTION: Activity Description 1) Building permitting, plan review and inspection 2) Liquor, contractor, cigarette, mist. licensing 3) Land use permitting and zoning code enforcement 4) Initial rental and vacant property inspections 5) Staffing Planning Commission Objectives 1) Maintain effective and timely building inspections 2) Maintain housing integrity through rental and abandoned property inspections 3) Maintain neighborhood stability through building and zoning inspections 4) Implement the goals and policies of the Comprehensive Plan Budget Comments 1) Reduction from $3,000 to zero for computer equipment as the department received new computers in 2012. 2) Increase in repair and maintenance to reflect GIS upgrade and license 3)Majority of non - personal service expenditures are internal charges 4) Overall budget reflects almost a 1% decrease 5) Expenditure over revenues is $65,633. Fund 201 is self contained and does not rely on general fund. The revenue stream is "imperfect" meaning that year to year expenditure /revenue outcomes vary greatly. As such, Fund 201 maintains a fund operating reserve for "loss years." December 2011 201 fund balance is $214,458 with an anticipated use of $135,000 for budget offsets in FY 2012 and 2013, leaving approximately $79,458 for FY 2014. It is anticipated that by 2014 the Huset Park Redevelopment will have been restarted with $100,000 of permitting fees needed to complete the project, creating a balance in expenditure to revenues and possible additions to the operating reserves. CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2013 DEPARTMENT: PROTECTIVE INSPECTIONS 201 COMMUNITY DEVELOPMENT Actual Actual Adopted Department City Manager F Council 42400 PROTECTIVE INSPECTIONS Expense Expense Budget Proposed Proposed Adopted Line Item Description 2010 2011 2012 2013 2013 2013 0999 Personal Services 191,234 227,345 197,460 197,798 - - 1999 Supplies 1,660 3,120 5,875 2,620 - - 2999 Other Services & Charges 13,373 13,324 13,574 14,567 - - 4999 Capital Outlay - - - - - 6999 Contingencies & Transfers 12,666 13,110 12,832 16,264 - - TOTALS:PROTECTIVEINSPECTIONS 218,934 256,899 229,741 231,249 - - Activity Description 1) Building permitting, plan review and inspection 2) Liquor, contractor, cigarette, mist. licensing 3) Land use permitting and zoning code enforcement 4) Initial rental and vacant property inspections 5) Staffing Planning Commission Objectives 1) Maintain effective and timely building inspections 2) Maintain housing integrity through rental and abandoned property inspections 3) Maintain neighborhood stability through building and zoning inspections 4) Implement the goals and policies of the Comprehensive Plan Budget Comments 1) Reduction from $3,000 to zero for computer equipment as the department received new computers in 2012. 2) Increase in repair and maintenance to reflect GIS upgrade and license 3)Majority of non - personal service expenditures are internal charges 4) Overall budget reflects almost a 1% decrease 5) Expenditure over revenues is $65,633. Fund 201 is self contained and does not rely on general fund. The revenue stream is "imperfect" meaning that year to year expenditure /revenue outcomes vary greatly. As such, Fund 201 maintains a fund operating reserve for "loss years." December 2011 201 fund balance is $214,458 with an anticipated use of $135,000 for budget offsets in FY 2012 and 2013, leaving approximately $79,458 for FY 2014. It is anticipated that by 2014 the Huset Park Redevelopment will have been restarted with $100,000 of permitting fees needed to complete the project, creating a balance in expenditure to revenues and possible additions to the operating reserves. PROTECTIVE INSPECTIONS PERSONAL SERVICES 1000 ACCRUED SALARIES 1010 REGULAR EMPLOYEES 1012 SEASONAL EMPLOYEES 1020 OVERTIME- REGULAR 1030 VACATION & SICK 1050 SEVERANCE PAY 1060 MILEAGE ALLOWANCE 1070 INTERDEPARTMENTAL LABOR SERV 1210 P.E.R.A. CONTRIBUTION 1220 F.I.C.A. CONTRIBUTION 1225 FLEX BENEFIT FICA 1300 INSURANCE 1400 UNEMPLOYMENT COMPENSATION 1510 WORKERS COMP INSURANCE PREM 1700 ALLOCATED FRINGE 0999 TOTALS: PERSONAL SERVICES SUPPLIES 2000 OFFICE SUPPLIES 2010 MINOR EQUIPMENT 2011 COMPUTER EQUIPMENT 2020 COMPUTER SUPPLIES 2030 PRINTING & PRINTED FORMS 2171 GENERALSUPPLIES 2175 FOOD SUPPLIES 2280 VEHICLE REPAIR AND PARTS 2282 GAS, OIL, LUBRICANTS 1999 TOTALS: SUPPLIES OTHER SERVICES & CHARGES 3045 ATTORNEY FEES -OTHER 3050 EXPERT & PROFESSIONAL SERV. 3105 TRAINING & EDUC ACTIVITIS 3120 EDUCATIONAL REIMBURSEMENT 3210 TELEPHONE & TELEGRAPH 3211 CELL PHONES 3220 POSTAGE 3250 OTHER COMMUNICATIONS 3310 LOCALTRAVEL EXPENSE 3320 OUT OF TOWN TRAVEL EXPENSE 3500 LEGAL NOTICE PUBLISHING 3600 INSURANCE & BONDS 4000 REPAIR & MAINT. SERVICES 4050 GARAGE, LABOR BURD. 4100 RENTS & LEASES 4300 MISC. CHARGES 4310 CREDIT CARD FEES 4330 SUBSCRIPTION, MEMBERSHIP 4380 COMMISSION & BOARDS 4390 TAXES & LICENSES 4395 STATE SALES TAX 2999 TOTALS: OTHER SERVICES & CHARGES CAPITALOUTLAY 4999 TOTALS: CAPITAL OUTLAY City of Columbia Heights 2013 Budget Worksheet Actual Actual Adopted Departmer Expense Expense Budget Proposed 2010 1 2011 1 2012 2013 173,624 1,244 4,444 (36,782) 12,175 13,436 22,091 1,003 191,234 469 Yp1- 3 34 125 820 1,660 1,444 573 1,500 379 820 1,090 53 275 463 2,531 2,637 306 847 413 43 13,373 172,954 1,174 2,912 30 12,564 13,374 23,437 902 227,345 152,338 700 11,034 11,707 20,472 1,209 197,460 152,338 700 11,034 11,707 20,796 1,223 197,798 City Manager Council Proposed Adopted 2013 2013 418 600 475 - 1,479 3,000 - - - 300 300 - 327 200 50 - 3 500 420 - 11 75 125 - 60 200 250 - 821 1,000 1,000 - 3,120 5,875 2,620 - 1,205 1,500 1,200 - 649 1,000 1,000 - 1,165 - - - 371 - 791 - 973 993 432 - 1,160 1,100 1,200 - 203 - 760 44 150 150 765 750 750 - 2,531 2,531 1,267 - 2,478 3,500 4,967 - 470 300 300 - (135) - - - 946 800 900 - 458 450 450 - 39 300 300 - 200 100 13,324 13,574 14,567 - City of Columbia Heights 2013 Budget Worksheet 201 COMMUNITY DEVELOPMENT Actual Actual Adopted Department City Manager Council 42400 PROTECTIVE INSPECTIONS Expense Expense Budget Proposed Proposed Adopted Line Item Description 2010 2011 2012 2013 2013 2013 OTHER FINANCING USES 7100 OPER. TRANSFER OUT - LABOR 12,666 13,110 12,832 12,848 8100 CONTINGENCIES - - - 3,416 6999 TOTALS: OTHER- FINANCING USES 12,666 13,110 12,832 16,264 TOTALS: PROTECTIVE INSPECTIONS 218,934 256,899 229,741 231,249 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2013 FUND NUMBER 0.20 PROTECTIVE INSPECTIONS Labor Allocation To: 204 -46314 Planner 201 -42400 (0.50) (37,893) (10,760) (48,653) (37,893) (10,764) (48,657) 204 -46314 Sec. II Permits (0.50) (0.50) (24,074) (7,811) (31,885) (24,074) (8,139) (32,213) SUMMARY OF COST FACTORS FORTHE COMING YEAR 2,20".,.2:20c. 153,037 . %a44,423:�K.197,460, 1 153,037 ;; 44,76P'- '..1971797 Supplies 2000 $475 Miscellaneous office supplies as needed Explanation of Personnel 2020 $300 Computer related supplies as needed 2030 $50 Receipt forms 2012 Adopted 2013 Proposed $420 Fax machine purchase and water 2280 Total 2282 $1,000 Historical average for gas for inspection vehicle Total 2175 F.T.E. Total Total Comp 3050 Total Total Comp Position Title 2012 2013 Salaries Fringe & Fringe $791 Telephone - internal charge Salaries Fringe & Fringe Planner 1.00 1100 75,785 21,521 97,306 75,785 21,528 97,313 Sec. II Permits 1.00 1.00 48,147 15,623 63,770 3500 48,147 16,276 64,423 Buildine Official 1.00 1.00 70,301 20,659 90,960 $4,967 Cost for copier, permit works and GIS 70,301 20,666 90,967 204 -46314 Director 0.20 0.20 20,771 5,191 25,962 20,771 5,193 25,964 Labor Allocation To: 204 -46314 Planner (0.50) (0.50) (37,893) (10,760) (48,653) (37,893) (10,764) (48,657) 204 -46314 Sec. II Permits (0.50) (0.50) (24,074) (7,811) (31,885) (24,074) (8,139) (32,213) Total," 2,20".,.2:20c. 153,037 . %a44,423:�K.197,460, 1 153,037 ;; 44,76P'- '..1971797 Supplies 2000 $475 Miscellaneous office supplies as needed 2020 $300 Computer related supplies as needed 2030 $50 Receipt forms 2171 $420 Fax machine purchase and water 2280 $250 Unscheduled minor repair for inspection vehicle 2282 $1,000 Historical average for gas for inspection vehicle 2175 $125 Food for public meetings and Citizen Academy Other Services & Charges 3050 $1,200 Audit fee 3105 $1,000 Required building training for certificate and planning seminars 3210 $791 Telephone - internal charge 3211 $432 Cell phones for building inspector and planner during summer inspections 3220 $1,200 Planning reports, legal notices and building permit over dues - internal charge 3250 $760 Internal charge for internet and laptop communication card 3310 $150 Field trips and seminars done by private car 3500 $750 Planning Commission notices 3600 $1,267 Insurance - internal charge 4000 $4,967 Cost for copier, permit works and GIS 4050 $300 Garage costs for inspection vehicle 4310 $900 Costs for building permits using credit cards 4330 $450 Cost for building memberships - ICC 10K, AMBO plus Anoka Union, Real Estate Journal 4380 $300 Planning Commission seminar fees 4390 $100 Car license Contingencies &Transfers 7100 $12,848 Internal labor charge CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2013 DEPARTMENT: ECONOMIC UtV twrrv¢ry I rau t nuns i . 204 COMMUNITY DEVELOPMENT 46314 ECONOMIC DEVELOPMENT AUTH Actual I Expense 2010 Actual Expense 2011 Adopted Budget 2012 Department Proposed 2013 City Manager Proposed 2013 Council Adopted 2013 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: ECONOMIC DEVELOPMEM Activity Description 253,707 215,093 288,883 288,484 1,063 3,334 4,300 725 16,571 13,584 20,974 17,005 63,666 103,110 25,997 17,846 335,008 335,120 340,154 324,060 1) Staffing EDA and HRA Commissions 2) Development and implementation of redevelopment projects 3) Design and implementation of housing programs 4) Resource and funding investigation 5) Special studies 6) Business development 7) Marketing and communication Obiectives 1) Implement the goals of the Economic Development Authority 2) Monitor and implement programs to ensure that foreclosed properties do not adversely affect neighborhood integrity. 3) Develop programs or activities that increase assessed value 4) Communicate the assets of the community 5) Enhance the commercial corridors of the City Budget Comments 1) Reduction in expenditures of $21,092 based on no transfer to fund 420, no computer cost since department received new computers in 2012 and a 20% decrease in expert and professional services. 2) Revenues are significantly reduced from 2012 reflecting 1) Sale of Parkview Villa with only one quarter of administrative reimbursement retained and 2) HRA Levy reduced due to market value decrease . Value of HRA levy could decrease further based on the State's final decision on "marketable vs. taxable " value. Since the HRA levy is a formula based on "value" the budget may need to be revised. Similar to Fund 201, a fund operating reserve is maintained. Expenditure over revenue is targeted at $16,000 and fund 204 operating reserves will be used for any off -sets. Fund 204 cash balance at the end of FY 2011 is $163,392 with outstanding receivables of $59,000 204 COMMUNITY DEVELOPMENT 16314 ECONOMIC DEVELOPMENT AUTHORITY Item Description PERSONAL SERVICES 1000 ACCRUED SALARIES 1010 REGULAR EMPLOYEES 1020 OVERTIME - REGULAR 1030 VACATION & SICK 1070 INTERDEPARTMENTAL LABOR SERV 1210 P.E.R.A. CONTRIBUTION 1220 F.I.C.A. CONTRIBUTION 1225 FLEX BENEFIT FICA 1300 INSURANCE 1400 UNEMPLOYMENT COMPENSATION 1510 WORKERS COMP INSURANCE PREM 1700 ALLOCATED FRINGE 0999 TOTALS: PERSONAL SERVICES SUPPLIES 2000 OFFICE SUPPLIES 2010 MINOR EQUIPMENT 2011 COMPUTER EQUIPMENT 2020 COMPUTER SUPPLIES 2030 PRINTING & PRINTED FORMS 2171 GENERAL SUPPLIES 2175 FOOD SUPPLIES 2280 VEHICLE REPAIR AND PARTS 1999 TOTALS: SUPPLIES OTHER SERVICES & CHARGES 3045 ATTORNEY FEES -OTHER 3050 EXPERT & PROFESSIONAL SERV. 3105 TRAINING & EDUC ACTIVITIES 3120 EDUCATIONAL REIMBURSEMENT 3210 TELEPHONE & TELEGRAPH 3220 POSTAGE 3250 OTHER COMMUNICATIONS 3310 LOCAL TRAVEL EXPENSE 3320 OUT OF TOWN TRAVEL EXPENSE 3430 ADVERTISING OTHER 3500 LEGAL NOTICE PUBLISHING 3600 INSURANCE & BONDS 4000 REPAIR & MAINT. SERVICES 4020 BUILDING MAINTENANCE 4050 GARAGE, LABOR BURD. 4100 RENTS & LEASES 4300 MISC. CHARGES 4330 SUBSCRIPTION, MEMBERSHIP 4376 MISCELLANEOUS CIVIC AFFAIRS 4380 COMMISSION & BOARDS 4390 TAXES & LICENSES 4395 STATE SALES TAX 2999 TOTALS: OTHER SERVICES & CHARGES CAPITAL OUTLAY 5191 ASSETS FOR RESALE 4999 TOTALS: CAPITAL OUTLAY OTHER FINANCING USES City of Columbia Heights 2013 Budget Worksheet Actual Actual Adopter Expense Expense Budget 2010 2011 2012. 194,992 91 2,003 13,649 14,946 100 20,278 6,384 1,264 253,707 196,433 58 1,337 (37,000) 14,517 15,221 21,401 1,973 1,154 215,093 225,679 700 16,351 17,318 27,048 1,787 288,883 580 499 800 269 2,806 3,125 208 - 300 6 - 28 75 1,063 3,334 4,300 7,104 664 608 1,047 269 139 3,790 892 1,436 2 95 525 16,571 4,536 659 645 603 361 357 473 3,790 705 965 490 10,341 2,000 992 500 676 300 125 250 3,790 1,000 500 500 13,584 20,974 Department city managerl wunca Proposed Proposed Adopted 2013 2013 2013 225,679 700 16,382 17,319 26,592 1,812 288,484 475 200 50 725 8,000 1,500 805 600 268 300 100 250 2,232 750 1,000 500 700 17,005 City of Columbia Heights 2013 Budget Worksheet 204 COMMUNITY DEVELOPMENT Actual Actual Adopted Department City Manage 6314 ECONOMIC DEVELOPMENTAUTHORITY Expense Expense Budget Proposed Proposed tem Description 2010 2011 2012 2013 2013 7100 OPER. TRANSFER OUT - LABOR 12,666 13,110 12,831 12,848 7410 TRANSFER OUTTO COMM DEVELOPMENT - - - - 7413 TRANSFER TO CAP IMP DEVELOPMENT 51,000 90,000 13,166 - 8100 CONTINGENCIES - - - 4,998 6999 TOTALS: OTHER FINANCING USES 63,666 103,110 25,997 17,846 TOTALS: ECONOMIC DEVELOPMENT AUTHO 335,008 335,120 340,154 324,060 Adopted FUND NUMBER 204 -46314 Asst. Comm. Dev, Director SubtotaI Labor Allocation From: 201 -42400 Planner 201 -42400 Sec. Permit Labor Allocation To: 201 -42400 Director Supplies CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2013 ECONOMIC DEVELOPMENT AUTHORITY SUMMARY OF COST FACTORS FOR THE COMING YEAR Explanation of Personnel 2012 Adopted _ TmE F.T.E. Total Total Com 2012 1.00 1.001 81,329 22,389 Total Total Cool alaries Fringe & Frin 103,854 25,965 129, 81,329 22,399 103, 0.50 0.50 37,893 10,760 48,653 37,893 10,778 48,672 0.50 0.50 24,074 8,592 32,666 24,074 8,592 32,228 (0.20) (0.20) (20,771) (5,191) (25,962) (20,771) 2:80: : ' 2.801 : 226,379 �n .,. 62,5Q4 » : - 288,$$3 226379 $475 Miscellaneous office supplies for the year $50 rood for citizen academy and open houses $200 For possible computer accessories (5,191) Other Services and Charges $2,100 Expert and Professional Fees - auditor fee $5,900 For pre - development services $1,500 Seminars by EDAM, Sensible Land, Real Estate, St. Thomas Business $805 Telephone - internal charge $600 Postage - internal charge for correspondence to HRA, EDA bids, RFP's Ordinance Adm. $268 Other communication - internal charge $300 Local travel - inspections, field visits and mist. seminars $100 EDAM summer conference $250 Ordinance amendments, property sales, RFP's $2,232 Insurance - internal charge $750 Copier cost and contract $1,000 Proposed carpet to replace duct tape $500 Subscription membership - MNAPA, EDAM, and Real Estate Journal $700 Commissions and Boards- EDA Commission meeting per diem Contingencies & Transfers $12,848 Admin. Transfer - internal charge City of Columbia Heights 2013 Revenue Budget Worksheet 201 COMMUNITY DEVELOPMENT FUND 00 REVENUE Actual Revenue 2010 I Actual Revenue 2011 Aap o tea Budget 2012 ue artment Proposed 2013 rviena ai Proposed 2013 �� Adopted 2013 Line Item Description 32110 Liquor, Wine & Beer License 3,977 1,628 4,000 4,000 32122 Restaurant & Food - 50 - - - 32125 Multiple Dwellings 5,430 13,324 3,200 5,600 - 32161 Contractors License 17,960 15,720 16,000 16,000 - 32168 Other Professional& Occup 600 3,000 1,000 1,500 - 32178 Other amusement Licenses 1,195 1,530 1,100 1,200 - 32181 Conditional Use 4,994 4,910 2,000 2,000 - 32188 Other Business Licenses 4,855 3,030 2,500 2,500 - 32191 Sprinkler Permit Fees 6,590 1,129 2,000 1,000 - 32192 Building & Moving Permits 192,444 139,116 100,000 100,000 - 32193 Electrical Permits - - - - 32194 Heating Permits 31,285 19,820 12,000 12,000 32196 Plumbing Permits 19,926 12,069 11,000 11,000 32197 Abandoned Property Inspection Fees 9,390 4,450 3,000 5,000 33160 Federal Grant - - - - 33402 Property Tax Relief - - - - 33422 State Grant -Aid - - - - 33641 Other Government Grants - - - - 34112 Administrative Fees - - - - 34112 Administrative Fee - Special - - - - 36210 Interest on Investments 4,000 3,700 - - 36216 Loan Interest - - - - 36217 Business Loan Interest - - - 36219 Change in Fair Value (1,000) 2,100 - - 36220 General Government Rents - - - 36230 Contributions - - - - 36260 2% Surcharge Retention 529 196 400 400 36290 Other Miscellaneous Revenue 90 20 - - 36294 Surcharges Collected - - - - 36400 Principal Repayment -Loans - - - - 37222 Other - - - - 39100 Sale of Land - - - - 39101 Gain /Loss Sale Fixed Asset - - - - - 39140 Other Refunds & Reimbursements - - - - - 39203 Transfer In-General Fund - - - - - 39224 Transfer In- Contribution - - - - - 39226 Transfer In- Community Development - - - - - 39230 Transfer In- EDA - - - - Total Revenue 302,265 225,792 158,200 162,200 City of Columbia Heights 2013 Revenue Budget Worksheet 204 EDA ADMINISTRATION 00 REVENUE Actual Revenue 2010 Actual Revenue 2011 I Adopted I Budget 1 201: IDepartment Proposed 1 2013 I Manager I Proposed 2013 Council Adopted 2013 Line Item Description 31010 Current Ad Valorem 240,567 220,820 - - 31011 EDA Current Ad Valorem - - 84,811 84,811 31012 HRA Current Ad Valorem - - 218,343 209,790 31014 Area -Wide Taxes 76,550 76,159 - - - 31020 Delinquent Ad Valorem 7,426 8,036 - - - 31800 Payment in Lieu of Taxes - 391 - - - 31910 Penalties and Interest (1) (25) - - - 33160 Federal Grant - - - - - 33402 Property Tax Relief - - - - - 33407 Market Value Homestead Credit 14,692 15,259 - - - 33422 State Grant -Aid - - - - - 33641 Other Government Grants - - - - 34112 Administrative Fees - 140 - - - 36210 Interest on Investments 900 1,500 - - - 36216 Loan Interest - - - - - 36217 Business Loan Interest - - - - - 36219 Change in Fair Value (200) 800 - - - 36225 Non- Dwelling Rents - - - - - 36230 Contributions - - - - - 36400 Principal Repayment -Loans - 43,600 - - - 39100 Sale of Land - - - - - 39140 Other Refunds & Reimbursements - - 37,000 9,250 - 39204 Transfer In-insurance 37,500 - - - - 39205 Transfer In-Bonds - - - - - 39242 Transfer In -Cap Imp Devlp - - - - - 39252 Transfer In-Four Cities - - - - - 39290 Residual Equity Transfer - - - - - Total Revenue 377,435 366,679 340,154 303,851 - EDA RESOLUTION 2012 -11 RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS (EDA) ADOPTING THE 2013 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 $324,060 for year 2013. 2. The EDA adopts and recommends to the City Council for approval a levy of $84,811 for year 2013. 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. APPROVED THIS 61h day of August 2012 MOTION BY: SECONDED BY: Attest by: Walter R. Fehst, Executive Director Gary L. Peterson, President COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2012 -10 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 2013 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 2013; and WHEREAS, the EDA has before it for its consideration a copy of a budget for its operations for the fiscal year 2013 and the amount of the levy for collection in fiscal year 2013 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 $324,060 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 $209,790 with respect to taxes payable in calendar year 2013. 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 2013 and to take such other actions as are necessary to levy and certify such levy. Motion by: Second by: Motion passed this 6th day of August 2012 Attest by: Walter R. Fehst, Executive Director 2 Gary L. Peterson, President COLUMBIA HEIGI ITS ECONOMIC DEVELOPMENT AUTI IORITY (EDA) Meeting of: August 6, 2012 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO:7 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Single Family Deferred Loan 2012 Allocation BY: Sheila Carhiey BY: Resolution 2012 -12 DATE: June 14, 2012 BACKGROUND: Staff requests that the Economic Development Authority (EDA) authorize funding of $35,000 for the Single - Family Home Deferred Loan Program (SFDL), which was included in the Housing Maintenance Plan 2008 — 2017, approved by the EDA on August 18, 2007. The purpose of the SFDL is to provide low- interest loans to homeowners of lower income to complete structural improvements that would help maintain the quality of their homes and the City's housing stock. Assistance is targeted at homeowners who need to perform home maintenance, but who may not be able to pay a monthly debt service of a conventional loan. The SFDL would provide half of the total project costs, or up to $7,500, in a deferred loan to homeowners making 80% of the median area income or less. To qualify for the program, the homeowner must provide matching funds for the remaining project costs. Exterior home improvements related to health and safety, code violations or energy efficiency, such as windows, siding and roofs would be eligible. Repayment of the loan, plus simple interest of two percent, will be required upon sale of the house or transfer of title. The homeowner can use the proceeds from the sale of the house to pay the loan. Repaid loans will be returned to the funds available to finance future loans. In February 2011, the EDA allocated $35,000 to this program, to date $60,940 in loans have been obligated resulting in $0 fund balance for the remainder of 2012; if the EDA would like to continue the SFDL program staff suggests allocating $35,000 for 2012, which historically has been sufficient for a yearly allotment. RECOMMENDATION: Staff recommends the EDA obligate $35,000 from fund 420 for the Single Fain ily Deferred Loan Program. RECOMMENDED MOTION: Motion: Move to waive the reading of Resolution 2012 -12 there being ample copies available to the public. Motion: Move to approve Resolution 2012 -12 approving funding of $35,000 for the Single Family Deferred Loan from fund 420. of LV 1181111 LVIL EDA ACTION: EDA RESOLUTION NO. 2012-12 A RESOLUTION APPROVING FUNDING FOR THE SINGLE FAMILY DEFERRED LOAN PROGRAM ($35,000) WHEREAS, since 2007 the Economic Development Authority (EDA) has provided the Single Family Deferred Loan Program to residents of the City of Columbia Heights, and WHEREAS, the Columbia Heights EDA through its Comprehensive Plan has established as a goal the preservation of the single- family housing stock; and WHEREAS, the EDA approved the Housing Maintenance Plan 2008 -2017 to improve and maintain the residential homestead housing stock; and WHEREAS, this resolution seeks to authorize and provide additional funds for the continuation of the City's Single Family Deferred Loan Program to be administered by the City. NOW THEREFORE BE IT RESOLVED THEREFORE, BE IT RESOLVED, that the EDA allocates $35,000 for the Single Family Deferred Loan Program from Fund 420 — Capital Improvement Development Fund. Passed this 6"' day of August, 2012. President Walter Fehst, Executive Director cn n p r N O N > co w J A A A OD v 3 w T cn 3 N D < p O (D m N t N V 14 _:-A b N O O fAJI (Alt N O O O O O) O O O O O O O ;O N W n Q Efl Hd Efl y W A N 0 o O O 6 N O - -ivy i0 __...a._o_ O o.�o....._y 10 _ to °<3 °Q N N c� O O (C) (a W c m o m a 3 S W D a m ?. 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N N N N N N N m O_ O o_ O O O O �• N N N U) T r N 0 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 6, 2012 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO:8 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Scattered Site update /direction BY: Sheila Cartney BY: DATE: July 11, 2012 BACKGROUND: In February, the EDA approved RFP guidelines and directed staff to send out the RFP for development of four scattered site lots (4303 Reservoir Blvd, 4502 Washington, 4110 6tl', and 4421 5 "i). Staff sent out twenty RFP's directly and also listed the lots and RFP on the City's Webpage. The RFP provided a two month window for applicants to submit their proposals, no proposals were received. Currently the four lots are listed for sale on the City's webpage, on findingmyroof.com a free real- estate listing site aid Postlets.com a website that lists the real estate on several webpages for free. Because of the direction in February to only list the four lots, staff has not listed any other lots for sale on the webpage, as price points have not been established. In February the EDA also discussed three other options: (1) City continue to market and sell the properties with assistance of the EDA attorney, (2) Hire a realtor to market and sell the properties, (3) Partner with Anoka County's Realtor who is familiar with the area and restrictions. If the EDA were to choose option (1) a budget should be created for marketing (signage, web listings etc). If option (2) is selected an RFP would go out to the St. Paul Realtors Association and on our webpage and staff would bring back a recommendation at a later EDA meeting. Staff met with Anoka County's realtor, Jared Hoylo with Remax Advantage Plus, in January to discuss what Anoka County is doing with their lots, at that time he indicated he would be interested in listing the EDA lots, but has not been contacted since then (option 3). Regardless of what option the EDA decides to go with staff recommends using the established guidelines for all the lots. Staff is seeking direction from the EDA on the next steps on the disposition of the scattered site lots. RECOMMENDATION: Staff is seeking direction from the EDA on how to proceed with selling the Scattered Site lots. RECOMMENDED MOTION: Attachments: Approved guidelines, list of lots EDA ACTION: February 24, 2012 Table of Contents ProgramObjectives ............................................... ..............................3 Application Requirements .................................... ..............................3 Builder Selection Criteria ........................................ ............................3 -4 House Design and Site Development Requirements ......................4 -5 City Review Procedure ........................................... ..............................5 LotSale ....................................................................... ............................5 -6 Building Permit Process .......................................... ..............................6 DataPrivacy .............................................................. ..............................6 Note: The EOA does not pay Broker or Finders Commissions and has the right to reject any proposal. 7 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. c 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 18 months after 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 foundation size of 1,020 square feet b. New dwellings must be owner - occupied by way of deed restrictions c. Minimum of three finished bedrooms are required d. Minimum of 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. Best efforts shall be made to replace any removed trees and should be shown on a landscape plan. 0 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 April 30, 2012 to EDA staff. 2. EDA staff presents all applications to the EDA at the May meeting. 3. At the EDA meeting, EDA preliminarily selects builder, subject to public hearing and negotiation of purchase and redevelopment agreement. EDA staff will then 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, and approving purchase and redevelopment agreement. 5. No later than 10 days after the public hearing, the builder must sign the purchase and redevelopment agreement and pay $2,000 nonrefundable earnest money for the lot. 6. No later than two months after signing the purchase and redevelopment agreement, the builder must close on the sale of the lot. 7. No later than 18- months after closing the builder must complete construction of 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, subject to right of reverter if builder fails to comply with purchase and redevelopment 5 agreement. EDA agree to reasonable terms of subordination of this right of reverter, negotiated with first mortgage lender. 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. 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. The name of each proposer will be public once the responses are opened, but the application materials will be private /confidential until EDA has approved a purchase and redevelopment agreement with selected builder. After that, all application materials (including from the builder selected and from those not selected) will be public data (except for any "trade secrets" as defined by law). 3 Scattered Site Properties owned by City /EDA H2O size City Owned Properties Adress - Zoning -iLot Size correct (List for sale - - I 2013 County Value 4011 5th Street IGB I 5160 no $35,000.00 4108 7th Street R2A 5200 no i $35,000.00 4502 Washington 4448 Quincy Street 4147 7th Street R2A 5160 - 112A 5160 112A i 3870 no $20,000 ( -- no no $28,500.00 $35,000.00 $31,500.00 4235 Washington Street 112A 5160 no $35,000.00 3853 3rd Street GB 30000 no $38,500.00 $35,000.00 - 4110 6th Street R2A 5200 no $20,000 4303 Reservoir Blvd R1 17600 no $50,000 $47,300.00 4039 5th Street R2A 5200 yes $35,000.00 Has 2 -car 4421 5th Street R2A 5200 yes $30,000 garage 1 $35,000.001 $3Q800.00 1309 Circle Terrace - duplex R2B 7830 yes $42,800.00 3842 Tyler Street 112A 4800 yes 3846 Tyler Street 4133 2nd Street R2A 5120 0 R2A j 6500 yes yes -- $42,800.00 $35,000.00 2)H )Mlh A-, - 3041 ` onGmen 31)31) IM /IoR00 no 1,pmmo 'lii i = Univck%jiv COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 6, 2012 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO:9 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Anoka County Levy BY: Scott Clark BY: DATE: July 22, 2012 BACKGROUND: In 2007 both the Economic Development Authority and the City Council entered into discussions and approved participating with the Anoka County Housing and Redevelopment Authority, for five years, to levy a tax for economic development purposes. Attached is the August 28, 2007 EDA report and City Council Resolution 42007 -156 which will give the rationale for the participation. At that time, it was calculated that the total five year allocation would be approximately $1,285,776 minus the County's administration fee of 15% (the final net number would be $1,092,250). However, the total net anticipated allocation from years 2008 -2012 is only $937,524 since the levy amount is driven by State formula and is calculated based on City marketable tax value, which has decreased greatly over the past 5 years. Attached is a spread sheet showing the obligated and unobligated funds for the 2008 through 2012 allocations. The majority of the funds were previously dedicated to the purchase of the " Mady's Property" as part of a large redevelopment action, but the offer to purchase the property was rescinded by the owner. The Anoka County levy program is a rolling five year program which means that the City /EDA has to either (1) Agree to be part of the program for another five years ( years 2013- 2017 with an estimated total net allocation of $850,000 ($170,000 annualy) or (2) Not re -up and forfeit the opportunity to participate for the full five year cycle. The policy question for the EDA is their desire, or not, to use this program as a future source for redevelopment, housing and /or economic development programs. The EDA has limited resources for future activities and this allocation provides another tool for activities that could be halted due to a lack of finds. From a staff perspective, the lack of currently having a specific program attached to these funds should not be a rationale for not continuing with the levy program. As the City ages, new issues and hopefully opportunities, will present themselves for public assisted reinvestment. As stated previously, these finds can't be generated at a future date nor are they characterized as grant funds that could be applied for when needed. The funds can be viewed as creating a fund balance towards future expenditures that are consistent with an aging community and match the goals of the City. Examples of future use could be purchasing or assisting in a major redevelopment effort (such as a Mady's type project) or a loan program that would leverage these funds and allow access to a greater range of income levels. According to Anoka County, if the City desires to proceed with a new five year allocation no new resolution has to be passed and the extension is automatic. If the City elects not to pursue this funding levy a letter should be forwarded regarding the same. RECOMMENDATION — staff views that as an aging community the EDA should avail themselves to whatever funding sources that they can for future projects. As stated in the 2007 report, if an EDA has a future project that is critical these funds can serve as an alternative to bonding, reducing the EDA's current redevelopment funds and /or the need to seek funding from other sources. Many first ring suburbs have compiled significant levels of redevelopment fiord balances from old tax increment districts and this City has not had that luxury, meaning that building fund balances for redevelopment efforts needs to come from whatever sources can be found. That being said staff recommends continuing with the five year program. RECOMMENDED MOTION: Motion: Move to authorize staff to submit a letter of acknowledgement to Anoka County that the City will continue with the Anoka County Economic Development Levy. Allachnwnts: S readshcet of funds, 2007 -156 resolution, staff rc port dated Au ust 28, 2007 EDA ACTION: D MoD I t '� 'I o nc j o' I= 0. m d n c ''o o 0 o l N (D 3 N G (D /D (D d N _ 0. 0 C 0 O N 'rl TI -n O O J Z 7 n n o !1 a r 0 0 m N m j v O O p N, j jj n 3 7 O,I O W o 3 O N u cr a °7 i� �� °-: °i 2 u �I _. Q i 6 m D r Q IN N 'm N N (D N (D 0 0. (o m m l a a a a ! a 0 i�- -n PI) o 0 0 m co o (D N 3 j No O 0 0 N �N toil m p p O ! N '• c ,' i I SU ; ,, I (D N ! °i 3 O 0 (D CD : I N II ; ! �I N ' N Efl Efl (A 1 (P 69 j EA Ill Efl (n Q) N (n H3 4fl A (ffl O (n fA 4f9 O N N O O (o O 00 V O j A 00 co A rn w O 00 A (3) N O 6J O N (D ) O O 00 ) O O O co cn --A N (P 00 O O O O O O (O O O O O n m A O O A A O O O O ( O !, 0 0 0 0 O A V 0 V O OHO O O O O O O O :O !O O O O O (O i0 O O O O O O O O O O O O_ II N IN fu j° a j m K 3 i3 3 (0 cn m (D j rn 1 m Ic m j N 3 (D 3 (D (D i I i N O 0O 0 c (D (D V a Q � m (n N (D j 3 n 0 j N �IaI 10) :(p 0 'N O ! . 1 1 O m N O 1 i 1 ( i O CITY OF COLUMBIA HEIGHTS RESOLUTION 2007 -156 RESOLUTION OF THE CITY OF COLUMBIA HEIGHTS TO PARTICIPATE IN THE ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY ECONOMIC DEVELOPMENT ACTIVITIES. WHEREAS, the City of Columbia Heights is an Anoka County municipality, and such is a rapidly growing and important segment of the Twin Cities Metropolitan Region, made up of rich variety of vital, desirable communities; and WHEREAS, the City of Columbia Heights Council members believe that the residents of Columbia Heights would realize many benefits from expansion of the Anoka County tax base, including but not limited to; the creation of local job opportunities, redeveloping certain sites within the City, as well as maintaining and improving the City's housing stock, wider sharing of tax burden, and access to enhanced infrastructure, services, and retail and business activities, and, WHEREAS, in order to expand the local tax base, the Anoka County Board of Commissioners has indicated an interest in fostering a regional approach to economic development in Anoka County, and, WHEREAS, in 2007 a statutorily formed citizens exploratory committee recommended to the Board of Commissioners that the Anoka County Housing and Redevelopment Authority be granted the powers of an economic development authority, and WHEREAS, on June 12, 2007, the Anoka County Board of Commissioners, after fulfilling the statutory requirements, did authorize their Housing and Redevelopment Authority to exercise the powers of an economic development authority, and, WHEREAS, MN Stat. 469.1082 requires that a municipality shall, declare its willingness, by resolution, to join the county in its economic development activities. NOW, THEREFORE BE IT RESOLVED, that the City of Columbia Heights does hereby declare its support of Anoka County and its countywide economic development objectives and activities, and, BE IT FURTHER RESOLVED that the City of Columbia Heights does hereby elect to participate in Anoka County Housing and Redevelopment Authority economic development activities, and, BE IT FURTHER RESOLVED that the City of Columbia Heights does hereby elect to participate in the Anoka County Housing and Redevelopment Authority economic development activities to request funds to support the City's redevelopment and housing maintenance and improvement goals, and, BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the City of Columbia Heights. Passed this _ day of , 2007 MOTION BY: SECONDED BY: AYES: NAYS: Mayor- Gary L. Peterson Attest by Patricia Muscovitz, Deputy Clerk/CAP COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meeting of: August 28, 2007 AGENDA SECTION: Business Items ORIGINATING DEPARTMENT: CITY MANAGER'S NO: 7 Community Development APPROVAL ITEM: Anoka County Housing & BY: Robert Streetar BY: Redevelopment Authority DATE: August 24, 2007 Economic Development Activities This memo presents EDA Commissioners with an offer from the Anoka County Housing and Redevelopment Authority (ACHRA) to participate in ACHRA economic development activities. Commissioners are asked to make a recommendation to the City Council. If Commissioners recommend participating, the recommendation will be forwarded to the City Council at their September 10th meeting for action. If not, no further action is required. Should the City participate in the ACHRA economic development activities? BACKGROUND: Should the City participate in the ACHRA Economic Development Activities? For background on the ACHRA's offer, please read the executive summary on pages 2 -4 of the Report of the Anoka County Economic Development Exploratory Committee that is attached. Analysis To participate the City Council must pass a resolution to "opt in" to the ACHRA economic development activities. If the City chooses to participate, it must participate for a minimum of five years, after which time the City may choose to "opt out." Should the City choose to participate the ACHRA would levy a tax in Columbia Heights each year the City participated. If the City chooses not to participate it must wait five years before it may choose to "opt in." As Commissioners know, the City is faced with many redevelopment and housing challenges, which will continue to present themselves long into the future. Redevelopment and improving the housing stock renews, and revitalizes the City, but it requires sufficient investment of public resources. By participating, the City would have additional resources to invest in these imrortant priorities. Redevelopment projects such as 37th and Central, 39th and Central, and 40h and University could benefit from these additional resources, as federal, state and regional resources have been declining or flat. It also means the City may not have to establish as many TIF districts, or may result in TIF districts with shorter terms, thereby ensuring the new taxes from redevelopment are placed on the tax roles sooner. In addition to increased resources for redevelopment and housing priorities, the City could also use all or part of the levy to pay for costs related to redeveloping the Heritage Heights site for the new public safety facility and /or a community center. For example, over the next fives years the ACHRA would probably levy a minimum of $1,021,245, or about $205,000 annually. If the City used all of the levy proceeds to reduce the annual debt service on the general obligation bonds to fund the acquisition, demolition and relocation costs required to make the site ready, the interest savings are estimated to be about $975,000, on a 25 -year issue at 5.25 %. Also, using the levy proceeds would reduce the amount of general obligation debt, thereby preserving the city's debt capacity for other needs such as public safety, or public works. The table below estimates the minimum and maximum the ACHRA could levy, and the cost to homeowner with a home with an estimated market value of $200,000. Minimum Levy* Cost* Maximum Levy Cost ** 2008 2009 2010 2011 2012 196,24 $200,166 $204,169 $208,252 $212,417 1 30.51 $30.82 $31.13 247,07 $252,014 3 $257,054 $38.80 Total $1,021,245 $154.10 $262,195 $267,439 1 $1,285,776 19 $39.581 $194.02 *As determined by the ACHRA, * *Estimated Market Value of Home - $200,000 In summary, the ACHRA is offering the City of Columbia Heights the opportunity to participate in the ACHRA economic development activities. This could provide additional resources for redevelopment and housing related activities, as well as reduce the cost of a public safety facility and /or community center. The cost of participating is estimated to be $30 to $40 annually. The Commissioners are asked to make a recommendation to the City Council to be acted upon at the September 10 City Council meeting. Karen Skepper, Anoka County Community Development Managerwill be present to answer any questions. RECOMMENDATION: Staff recommends commissioners discuss and make a recommendation to City Council to participate or not in the ACHRA Economic Development Activities. RECOMMENDED MOTION: None Attachments EDA ACTION: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 6, 2012 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO: 10 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: 828 40 °i Ave Tax Exemption Status BY: Sheila Cartney BY: DATE: July 18, 2012 BACKGROUND: In 1999 the EDA purchased property at 828 40 °i Ave with an old TV repair building on the lot. In 2001 the building was torn down leaving a vacant green space. Community Development Block Grant (CDBG) money was used for the purchase and demolition. The purchase price was $72,246.50 and demolition was $7,117.20 a total of $79,363.70 of CDBG funds used. After purchase of the lot, the property was placed into tax exempt status. For the past three years the subject lot has been used as a community garden and in 2011 the EDA turned down a proposal to sell the subject lot for a parking lot proposal for an adjacent accounting firm. It was also at that time that Anoka County explained national objective needs to be met or the city would need to pay back some of the CDBG fiords (market value not the total funds used). Based on a letter dated January 23, 2012 from Anoka County, as of December 31, 2012 the subject lot will no longer be tax exempt. State Statute 272.02 Subd. 39 states "The holding of property by a political subdivision of the state for later resale for economic development purposes shall be considered a public purpose in accordance with subdivision 8 for a period not to exceed nine years.." Anoka County 2013 value is $31,600 resulting in 2013 taxes of $659 in which $309 would come back to the City. The EDA has three options: 1. Start marketing this site for redevelopment and pay taxes a. If sold for redevelopment CDBG national objects will need to be met or the market value will have to be paid back to Anoka County. 2. Keep the site as is and start paying taxes on the site until ready to market. 3. Dedicate the lot as park land to permanently use as a community garden or green space, which will maintain the tax exempt status. However, this will trigger the need to pay back CDBG funds to Anoka County ($31,600). RECOMMENDATION: Due to the small net amount in taxes plus the cost to repay CDBG funds, staff recommends option #2 using Fund 420. RECOMMENDED MOTION: Motion: Move to keep the parcel as a community garden and pay taxes until the EDA is ready to market the lot for sale. Hu Launmell L : EDA ACTION: U w N n 974 • r A t 1 1 • IV 4030 838 0 cD 4047 820 820 3977 3970 3971 3967 3968 3960 3959 3957 3956 3953 3952 3948 3943 3944 3939 3938 3935 3934 3931 3930 838 4054 4047 4040 4041 4021 4032 4026 4022 4018 831 4012 843 00 00 M 00 838 84 3982 3976 3968 3973 3970 3967 3964 3963 3959 3962 3955 3956 3953 3946 3949 3943 3942 3935 3938 3934 3931 3930 Location Map n i I �I i 4057 4056 4053 4054 4049 4045 4048 4040 U) c 4030 v 4024 4020 4016 E4000 0 WE 900 3988 3982 3970 3968 3964 3958 3961 3957 3952 3951 3948 3947 8- 3932 3943 3939 3935 3931 3928 W Q qJ Ll: Z W U COUNTY OF ANOKA DIVISION OF PROPERTY RECORDS AND TAXATION GOVERNMENT CENTER o 2100 3RD AVENUE ^ ANOKA, MN 55303 FAX (763) 323 -5421 Date: January 23, 2012 RE: 35- 30 -24 -41 -0114 www.AnokaCounty.us/prop-records-tax • Property Assessment • Property Records and Public Service Property Tax Accounting and Research To Whom It May Concern: Per Minnesota STATUE 272.02 SUBD 39, the above referenced property is no longer eligible for exemption from property taxes. This letter is to advise your office that the property tax exemption will end December 31, 2012. If you have any questions concerning this, please contact the Assessor's Office at 323 -5461. Thank you, Edna Coolidgei_ Property Specialist Affirmative Action / Equal Opportunity Employer