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HomeMy WebLinkAboutEDA MIN 04-07-14 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF APRIL 7, 2014 IN CONFERENCE ROOM 1 The meeting was called to order at 6:30 pm by Chair Peterson. Members Present: Bruce Nawrocki, Donna Schmitt, Bobby Williams, Gerry Herringer, Marlaine Szurek, Gary Peterson, and Tami Diehm (arrived at 6:35 pm). Staff Present: Walt Fehst, Scott Clark, Joseph Hogeboom, Shelley Hanson, and Elizabeth Holmbeck (Intern). 2. PLEDGE OF ALLEGIANCE- RECITED Clark Notified Board that he is adding an item to Administrative Reports regarding an Update to the Huset Park Redevelopment Project. 3CONSENT ITEMS . 1.Approve the Minutes from February 3, 2014 and Executive Session Minutes of February 3, 2014. 2.Approve the Financial Report and Payment of Bills for January and February 2014 on Resolution 2014-02. Questions by Members: Nawrocki said that he hadn’t gotten the information he asked about at the last meeting as noted in the minutes of February 3, 2014. Clark explained that the figures from the Anoka County Tax Levy come to the City from two different pools of money and the accounting system is set up to indicate this. Motion by Williams, seconded by Szurek, to waive the reading of Resolution 2014-02, there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Szurek, to approve the consent agenda items as presented. All ayes. MOTION PASSED. EDA RESOLUTION 2014-02 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR JANUARY AND FEBRUARY, 2014 AND PAYMENT OF BILLS FOR THE MONTHS OF JANUARY AND FEBRUARY 2014. 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 EDA Minutes Page 2 April 7, 2014 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 January and February 2014 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. th Passed this 7 day of April, 2014. MOTION BY: Williams SECONDED BY: Szurek AYES: All ayes _________________________________ President Attest By: ______________________ Shelley Hanson, Secretary NEW BUSINESS 4. EDA Strategic Planning Guide Clark reminded members that on January 14, 2014 the Economic Development Authority (EDA) held a retreat to develop a long range strategic plan. The purpose of this plan has many purposes including providing a framework for future EDA discussions and actions, providing staff formal direction as to where time and resources should be spent and lastly, this document serves to EDA Minutes Page 3 April 7, 2014 communicate to all of Columbia Heights’ stake holders the priorities of the EDA/ City Council. It is also important to note that this plan serves as a framework, and as such, any action step that would require outside consultant work and/or budget allocations from the EDA’s Redevelopment Fund 420 would have to be approved under separate action by the EDA. The key items in the subject document prepared by Ehlers & Associates are: 1) Development of a communications plan and related branding efforts. 2) Initiation of redevelopment efforts for the Mady’s site. 3) Efforts to revitalize the City’s commercial strength. This would include a redevelopment plan for Central Ave., small business education, potential modifications to zoning and related City Ordinances and on-going discussions with various stakeholders to identify solutions to a weak market. 4) A much greater effort in the area of housing stability and the maintenance of neighborhoods. 5) Continuing efforts to ensure that Heritage Heights and Circle Terrace remain viable neighborhoods. 6) Although an HRA function, a recognition that the sale of Parkview Villa will be a major commitment by staff through 2014. Questions/Comments from members: Nawrocki asked if this is going to require additional staff to work on these goals. Clark responded that the five staff members in the department would be the primary individuals responsible for helping the City achieve these goals. Nawrocki then went on to say that he felt the Community Development/Building Inspection Department was overstaffed and that only four positions were needed. He said he thought the employee plan for the department during the Budget cycle was approved for only 4 people, and he felt that these goals were a “make work” project and not necessary. Clark responded that staffing was discussed during the budget sessions and that the department tried to function with 4 people for 8 months during 2013 and found that it doesn’t work. Based on that discussion, it was decided to somehow fill the vacant position to meet the needs of the department. Considering the Inspector is out in the field most of the day and there are many outside commitments for the other positions, it is often hard to provide service to residents, contractors, developers, and others seeking information provided by the department. Fehst said he didn’t feel it is “making work” or wasting time for the City Council/EDA Board to set goals in order to better the City. He said this is actually part of their job to steer the City in a direction they would like to see it go, and it helps to give staff direction in order to achieve these goals. EDA Minutes Page 4 April 7, 2014 Diehm stated the date on the Strategic Planning Guide should be changed to January 14, 2014-not April 14, 2014, as that is when the retreat was held. She also thought the document Ehlers prepared was a good way to keep the Council/Board on track although some of the dates established to accomplish the goals may be a bit optimistic. She said it is a good tool to help the Council make their decisions based upon items that were discussed and agreed upon at the session in order to make positive changes for the City’s future. Clark stated that once Parkview Villa is sold, staff will be able to put more effort into these projects to hopefully get them accomplished by the target dates. Motion by Nawrocki, that the document be sent back to staff to make changes to it that can be accomplished with a staff of 4 people. Due to a lack of a second, the motion dies. Nawrocki then stated that he thinks things in Columbia Heights are going well and there is no real need to expend monies for these types of activities. Motion by Diehm, seconded by Williams, to Adopt 2014/2015 Strategic Planning Goals Dated April 14, 2014. Roll Call: Nawrocki-Nay -- Williams, Diehm, Szurek, Schmitt, Peterson, and Herringer (he felt it was a lot to accomplish in the timeframe allotted). MOTION PASSED. 5. Communication and Branding Request for Proposals Hogeboom stated that at the January 14, 2014 Economic Development Authority (EDA) Retreat, EDA Commissioners expressed an interest in evaluating current communication efforts made by the City as well as the desire to initiate a community branding campaign. The purpose of this endeavor would be to identify and promote the positive attributes and unique characteristics of Columbia Heights to the greater Twin Cities region, as well as to evaluate and improve city communication tools. Currently, the cities of Woodbury and Brooklyn Park are also engaging in citywide branding efforts. Community Development staff spoke with representatives from these communities to discuss the details of their individual programs. Hogeboom said Woodbury is undertaking this project on a smaller scale, whereas Brooklyn Park decided to do theirs on a larger scale which has been on-going for a few years already. Based on those discussions, staff proposes the following deliverables for our campaign:  Identify unique characteristics and strengths of the community (i.e. proximity to Northeast Minneapolis arts community).  Identify current regional perceptions of Columbia Heights and the near-north suburbs.  Engage residents, the Economic Development Authority, and business stakeholders in forming a brand identity.  Evaluate current City communication tools (newsletter, website, social media, logo, etc.) and provide recommendations for improvement.  Develop a brand “manual” that provides strategies, goals and objectives to improve overall communication and implements branding efforts. EDA Minutes Page 5 April 7, 2014 Staff has compiled a proposed Request for Qualifications notice that, with EDA approval, would be distributed to local consultants who specialize in communication and brand identification methods. Hogeboom reviewed the timeline with members and said Staff would interview applicants, and provide a recommendation for hire to the EDA in June. The consultant’s work would take approximately four months, achieving all of the proposed deliverables by the end of September. At the time that a successful candidate is selected, staff is recommending that the City transfer to the EDA the budget amount from Fund 226 “Special Projects Fund.” This transfer is a future action and the motion before the EDA is to simply authorize the RFQ and to establish a budget figure. Comments/Questions from Members: Herringer asked what types of firms specialize in this work—are they mostly PR firms and where did staff obtain a list of who to contact? Hogeboom explained that he obtained a list of possible companies from Ehlers and also from the cities he contacted. They have a variety of expertise such as communications, public relations, and combination services such as those provided by Stantec that offer expertise in many areas. Herringer thought that a firm specializing in public relations would be the best option for the city to help get our message out, which is something we haven’t been able to accomplish on our own. Williams and Fehst agreed. Szurek also thought public relations and communicating our message is important, but expressed her hesitation in considering Stantec for the job. She felt they provided poor service when they worked on our last Comp Plan Update (under the name of Bonestroo). Fehst invited any interested members to sit in on the interviews to help choose a firm. Schmitt asked if $30,000 was a realistic amount. Considering it may take $15,000 or so to get a plan from the hired firm, she wondered if $15,000 to actually implement the plan is enough. Fehst said we may have to increase that amount later based on what plan the Board/Council finally chooses. Hogeboom stated the amount proposed thus far should get us started, but is on the low end of what the other communities have spent. It will of course depend on how extensive the Council wants the campaign to be. Nawrocki stated he didn’t think we should expend $30,000 of City funds for this project. Motion by Herringer, seconded by Schmitt, to establish a budget in the amount of $30,000 for a citywide branding campaign and to authorize staff to initiate the Request for Qualifications process. Nawrocki-Nay -- Herringer, Williams, Szurek, Schmitt, Diehm, and Peterson-Ayes. MOTION PASSED. EDA Minutes Page 6 April 7, 2014 A copy of the RFP is attached. REQUEST FOR QUALIFICATIONS (RFQ) The City of Columbia Heights is seeking professional marketing and communications services to guide the development of a branding campaign that promotes the positive attributes of the community. The consultant would identify and promote Columbia Heights’ unique neighborhoods, business districts, and natural features. The branding effort will highlight the City’s assets, and generate a positive perception to our residents and business community as well as to the Twin Cities regional marketplace. Deliverables and Responsibilities  Identify unique characteristics and strengths of the community (i.e. proximity to Northeast Minneapolis arts community).  Identify current regional perceptions of Columbia Heights and the near-north suburbs.  Engage residents, the Economic Development Authority, and business stakeholders in forming a brand identity.  Evaluate current City communication tools (newsletter, website, social media, logo, etc.) and provide recommendations for improvement.  Develop a brand “manual” that provides strategies, goals and objectives to improve overall communication and implements branding efforts. Budget The working budget for this program has been established at $30,000. Approximately 50% of the budget will be dedicated to research and brand development, and the remainder will be dedicated to the creation and implementation of the brand manual and possible physical infrastructure (signs, etc.). Responses Interested parties shall submit a document that details the proposed approach to achieve the deliverables and responsibilities, a work plan outline, a resume and a proposed fee. This document should be limited to five pages that include references, case studies and other supporting material. Evaluation Criteria and Selection The City will create a Selection Review Committee that will consider the following criteria: EDA Minutes Page 7 April 7, 2014 1.Firm’s demonstrated understanding of the City’s needs. – 25 points 2.Firm’s and individuals’ experience, qualifications and technical skills. – 25 points 3.Firm’s stated ability to identify and collaborate with project stakeholders. – 25 points 4.Firm’s proposed fees. – 25 points Upon completion of interviews and rating of consulting firms, the Selection Review Committee may negotiate a draft contract with the top ranted firm. The Columbia Heights Economic Development Authority must authorize and execute the contract. Timeline April 21, 2014 RFQ Distributed May 5, 2014 Deadline for Proposers’ questions sent via email May 14, 2014 Deadline for Proposals sent via email or mail May 21, 2014 Potential candidates notified May 27 - 30, 2014 Candidate Interviews June 2, 2014 Candidate selection at Economic Development Authority meeting Contact Please submit questions and all correspondence to: Joe Hogeboom, Assistant Community Development Director City of Columbia Heights th 590 40 Avenue NE Columbia Heights, MN 55421 Joseph.hogeboom@ci.columbia-heights.mn.us (763) 706-3675 6. Administrative Report Discussion on Huset Park: Clark passed out a memo prepared by Kennedy & Graven stating their legal opinion regarding serving BNC Bank a Default Notice on their Redevelopment Contract with the City of Columbia Heights. Clark explained that BNC has not paid their 2013 taxes for the three parcels that remain undeveloped. The majority of the tax amount is for special assessments, which he detailed for the members. Due to the fact that we sold tax exempt bonds in 2007 related to this project, it limits us on what reasons the City can issue a Default Notice to them. We cannot use the lack of payment of taxes as the default of the contract. However, the City can use the fact they have failed to complete construction according to the schedule. We also can withhold their tax increment payments and put them into an escrow account until such time they become current. The legal opinion also states that any further changes to the contract such as proposed construction projects, be postponed until they become current. EDA Minutes Page 8 April 7, 2014 Clark told members that staff will serve them with a default notice and will give them an update in May. Nawrocki asked if the whole project area was in default. Clark told him no, just the three remaining th parcels (the round-a-bout piece, the piece at 37 and University, and the parcel just north of that to finish off the rest of the townhouses). Herringer asked if BNC would be responsible for paying penalties and interest on the defaulted amount. Clark told him yes. When he contacted BNC regarding their lack of payment, he was told that it was a deliberate decision on the part of BNC not to pay the tax amount, and that it wasn’t an oversight. There was some discussion regarding the townhouse association’s possible interest in purchasing the round-a-bout parcel. Parkview Villa Update Clark said he thinks the framework of a deal is close to being accomplished between HUD and Aeon for the purchase of Parkview Villa. He said there is a tentative agreement with HUD and that some concessions will have to be made. Aeon will have to work on their tax credits and reconciliation statements for HUD, but he is hoping for the closing to take place around January. The next regular EDA meeting will be Monday, May 5, 2014 at City Hall at 6:30 pm. The meeting was adjourned at 7:20 pm. Respectfully submitted, Shelley Hanson Secretary