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HomeMy WebLinkAboutEDA MIN 05-07-12 EDA Minutes Page 1 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 Diehm. 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. CONSENT ITEMS 3. 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. EDA Minutes Page 2 May 7, 2012 Motion by Bobby Williams, seconded by Donna Schmitt, to waive 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 EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the month of 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 funds; and EDA 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 – Section 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; THEREFORE 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 PURCHASE 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 EDA’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 25ft. 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 th meeting of May 14 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 th property. He questioned Columbia Heights Rental (CHR) using 39 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 th to stay at 39 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 th access to 39 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 Commissioners 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 Title, Wilson Development Services and Kurth Survey and Engineering . th Passed this 7 day of May 2012. Roll Call: Offered by: Aye: Nay: __________________________ President _______________________ Walter Fehst, Executive Director INSERT LETTER OF UNDERSTANDING EDA 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 8 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 funds 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 further reports. EDA 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 pm. Respectfully submitted, Sheila Cartney Acting Secretary