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HomeMy WebLinkAboutEDA MIN 02-06-12 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF FEBRUARY 6, 2012 IN CONFERENCE ROOM 1 The meeting was called to order at 6:38 pm by Executive Director-Walt Fehst. Members Present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, and Tammera Diehm. Bobby Williams arrived at 7:00 pm. Members Absent: Marlaine Szurek and Gerry Herringer (term expired-needs to take new Oath of Office). Staff Present: Walt Fehst, Scott Clark, Sheila Cartney, and Shelley Hanson. 2. PLEDGE OF ALLEGIANCE- RECITED 3. ELECTION OF OFFICERS- Chair- Diehm nominated Peterson for Chair, seconded by Schmitt. There were no further nominations. All ayes. Vice Chair: Diehm nominated Schmitt for Vice Chair, seconded by Nawrocki. There were no further nominations. All ayes. Secretary/Treasurer: Schmitt nominated Nawrocki for Secretary/Treasurer, seconded by Diehm. There were no further nominations. All ayes. 4. CONSENT ITEMS 1.Approve the Minutes from November 22, 2011. 2.Approve the Financial Report and Payment of Bills for November and December, 2011 on Resolution 2012-01. Questions from members: There were no questions. Motion by Diehm, seconded by Schmitt, to waive the reading of Resolution 2012-01, there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Diehm, seconded by Schmitt, to approve the minutes and adopt Resolution 2012-01 approving the payment of bills for November and December 2011. All ayes. MOTION PASSED. EDA MINUTES Page 2 EDA RESOLUTION 2012-01 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR NOVEMBER AND DECEMBER, 2011 AND PAYMENT OF BILLS FOR THE MONTHS OF NOVEMBER AND DECEMBER, 2011. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the months of November and December 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 6th Day of February, 2012 MOTION BY: Diehm SECONDED BY: Schmitt AYES: All ayes __________________________________ Gary Peterson, President Attest By: ______________________ Shelley Hanson, Secretary EDA MINUTES Page 3 BUSINESS ITEMS 5. BYLAW AMENDMENT-RESOLUTION 2012-02 Over the past year the EDA has been meeting on the first Monday of the month prior to the City Council workshops, with a few exceptions of longer meetings which have taken place on the regular th 4 Tuesday meeting night. 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: First Monday of the month Section 1. REGULAR MEETINGS. Monthly Meetings will be held on the 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/time/meeting 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 If possible, the fourth Tuesday of the month shall be the favorable meeting date. unanimous vote. Questions from Members: Nawrocki noted that in Section 3 the sentence regarding “any new business may be transacted at a special meeting by unanimous vote” should be deleted. He stated that only items included on the posted agenda may be considered at a special meeting. Cartney said this is the same wording we previously had in the By-laws that were amended in 2005. She suggested, however, that we pass the proposed Resolution as presented since it only addresses the change of dates, and that staff will get the Attorney’s opinion on this and bring it back to the Commission. Diehm agreed that passing the Resolution would be appropriate. The issue of new business being considered at a special meeting can be addressed at a later meeting if the Attorney advises a correction of the By-laws. Nawrocki also noted that if the meeting would ever end up on the second Tuesday of the month due to a Holiday postponing the meeting by a day, he would have a conflict with that date. Diehm assured him that the Commission would do its best to accommodate his schedule. EDA Minutes Page 4 Motion by Diehm, seconded by Schmitt, to waive the reading of Resolution 2012-02 there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Diehm, seconded by Schmitt, to adopt Resolution 2012-02, Resolution to Amend and Restate the By-Laws of the Economic Development Authority of Columbia Heights. All ayes. MOTION PASSED. 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 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 WHEREAS, 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 EDA Minutes Page 5 6. RFP PROCESS FOR SCATTERED SITE LOTS Cartney explained that 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 RFP 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, if the EDA approves the Guidelines staff will have the EDA’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. Copies of these documents were enclosed in the agenda packets. Cartney noted that Schmitt had asked for clarification on the house design requirements to detail whether each item was a requirement of the building code, our City Ordinance, or of this particular project. Those details and a spreadsheet regarding lots sizes and price points were passed out at the meeting to members for discussion. The initial bid process will include the following addresses: thth 4303 Reservoir Blvd., 4502 Washington St., 4110 6 St., and 4421 5 St. Cartney stated that RFP’s would be sent to three companies that have expressed an interest in the lots, to the Builder’s Association, and several other small builders that are familiar to staff. Clark added that staff will also contact other cities to gather additional names of contractors that are doing similar projects in those cities. She explained that depending on the interest and number of bids received, staff may have to expand the marketing of the lots. It is planned to put the initial RFP out there until May to see what response we get. Any bids submitted will be brought back to the EDA for consideration. She explained that the EDA Board will have complete control over what bids/plans they find acceptable. The proposed RFP staff prepared is to set some minimums to give the builders some guidelines so they don’t waste their time if they can’t meet or exceed all the criteria set by the EDA. Staff recommends approving the RFP and process as presented. Questions from members: Nawrocki thought the suggested minimum price for the lots was too low based on the estimated market values set by Anoka County. Cartney pointed out that the County has a number of lots they are trying to sell, and the selling price of these lots are lower than the estimated market values set by Anoka County also. She said Anoka County is using a Realtor and these selling prices were suggested by him, and this is what staff based their minimum selling price on for the purpose of this RFP. Nawrocki felt a minimum lot price shouldn’t be included in the RFP and to just let builders bid on them. EDA Minutes Page 6 Fehst said he thinks the lot price should be a secondary consideration right now. He thought that it may be more important to require a certain priced home instead. He would rather the builders concentrate on constructing a nice house with some style, than to construct a very basic, no frills house because they had to pay too much for the lot. He would like to see as much house as possible be constructed on these lots as he feels they will be more marketable and that they will improve neighborhoods. Fehst didn’t have a problem with the minimum lot prices suggested by staff for the RFP. Schmitt also thought the minimum lot prices were appropriate and felt there should be some type of a base or we will get a lot of proposals that the EDA won’t find acceptable. Schmitt did have some concern about the timeframe stipulated in the RFP. She thought it may not be long enough if the developer has to go through several City meetings prior to starting construction, which she pointed out, could be seasonally affected also. Clark pointed out that without some type of time-frame, the buyers could sit on the lots for years, and never develop them. The goal of the EDA is to get the lots re- developed and back on the tax rolls. After some discussion, it was decided to change the language to state that construction must be complete within 18 months of the purchase. Cartney stated that any deviations from this requirement can be addressed in the development agreement that we enter into with the builder. Peterson asked if a private party could purchase one of the lots. Clark stated there is nothing in the RFP to prevent that, as long as they meet all the requirements and the EDA finds their plans acceptable, we would welcome anyone to develop the lots. Diehm agreed with Fehst’s earlier comments and suggested that language be added to encourage builders to be creative with their plans as we are looking for style, as well as the best price we can get. Motion by Diehm, seconded by Williams, to approve the RFP Guidelines (as amended), with the minimum price points, and the process for the sale of Scattered Site lots with the understanding that the EDA may deviate from the stated minimum requirements if the proposal includes significant increases in market value and that language be included that we have the right to reject all offers. Nawrocki wanted to go on record that he opposes the motion as stated because the language of the RFP is not geared to get the best price for the City. Roll call Vote: ayes-Schmitt, Diehm, Peterson, and Williams Nay-Nawrocki MOTION PASSED. EDA Minutes Page 7 7. ADMINISTRATIVE REPORTS A.Community Development Steering Committee— Clark stated that members can review the memo that was enclosed in the agenda packets regarding the formation of a Community Development Steering Committee to review various Ordinances and policies to determine if modifications are needed. Two areas that have been identified as needing a review are the Sign Ordinance and the Design Guidelines. Staff proposes that the committee be comprised of 1 City Council member, 1 Planning & Zoning Commission member, 1 Staff member, 3 business owners, and 1 resident. This issue will be discussed at a future meeting since this meeting went over the set time-frame allowed. B.2012-13 Work Plan Clark asked members to review items staff prepared as Work Goals for 2012-2013. The goals are as follows: 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 These also will be addressed at a future meeting. Clark told members that O’Reilly’s Auto Parts have submitted their plans which will be reviewed at the March meeting. The next regular EDA meeting will be Monday, March 5, 2012 at City Hall. The meeting was adjourned at 7:30 pm. Respectfully submitted, Shelley Hanson Secretary