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HomeMy WebLinkAboutEDA MIN 08-04-14 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF AUGUST 4, 2014 IN CONFERENCE ROOM 1 The meeting was called to order at 6:30 pm by Chair Peterson. Members Present: Bruce Nawrocki, Donna Schmitt, Gary Peterson, and Tami Diehm. Bobby Williams arrived at 6:35 pm Members Absent: Gerry Herringer and Marlaine Szurek Staff Present: Kelly Bourgeois, Joseph Hogeboom, Joe Kloiber, and Shelley Hanson. 2. PLEDGE OF ALLEGIANCE- RECITED 3CONSENT ITEMS . 1.Approve the Minutes from June 23, 2014. 2.Approve the Financial Report and Payment of Bills for June 2014 on Resolution 2014-07. Questions by Members: There were no questions on this month’s report. Motion by Schmitt, seconded by Diehm, to waive the reading of Resolution 2014-07, there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Schmitt, seconded by Diehm, to approve the consent agenda items as presented. All ayes. MOTION PASSED. EDA RESOLUTION 2014-07 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR JUNE 2014 AND PAYMENT OF BILLS FOR THE MONTH OF JUNE 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 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 June 2014 has been reviewed by the EDA Commission; and EDA MINUTES Page 2 August 4, 2014 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 4th day of August, 2014 MOTION BY: Schmitt SECONDED BY: Diehm AYES: All ayes __________________________________ President Attest By: ______________________ Shelley Hanson, Secretary NEW BUSINESS 4. Property Sale Request- 4647 Polk St. NE Hogeboom explained that at the June EDA meeting the Board directed staff to move forward with Purchase Agreement Negotiations with Katherine and Steven Pepple of 4649 Polk Street for the purchase of the city owned adjacent property to the south (4647 Polk Street). The property to the south of the Pepple home was acquired by the City in 2008 as part of an effort to remove blighted and defunct housing from the Heritage Heights neighborhood. The house was removed, and the lot currently sits vacant. The Purchase Agreement has been drafted for the proposed sale. The Agreement has been devised to reflect many of the terms and conditions found in the Scattered Site Lot Program. Consistent with the program, the EDA recommended that the subject property be sold for $7,500, subject to construction standards and a defined construction timeframe. EDA Minutes Page 3 August 4, 2014 Hogeboom stated that we don’t have any of the city owned lots from the Sheffield/Heritage neighborhood in the Scattered Site Program. By adding this new home, it may spur some interest in the area so that some of the lots could possibly be added to the program in the future. Staff recommends that the EDA approve the attached Purchase Agreement for the sale of the property located at 4647 Polk Street NE. Questions from members: Nawrocki asked what happens if the Pepples don’t build on the lot. Diehm stated that it will revert back to the City as stated in the Purchase and Redevelopment Agreement. Schmitt asked if there are any conditions or specified time lines. Hogeboom explained that construction must commence by February, 2015. Once the permit is issued, inspections must occur within the 180 day time frame as established under the MN State Building Code. Motion by Diehm, seconded by Schmitt, to waive the reading of Resolution 2014-08, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Diehm, seconded by Schmitt, to adopt Resolution 2014-08 approving a Purchase agreement between the Columbia Heights Economic Development Authority and Katherine and Steven Pepple for the sale of 4647 Polk St. NE. All ayes. MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2014-08 RESOLUTION APPROVING A PURCHASE AND REDEVELOPMENT AGREEMENT (INCLUDING THE SALE OF LAND) BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND KATHERINE AND STEVEN PEPPLE BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections 469.090 to 469.108 ("EDA Act"). EDA Minutes Page 4 August 4, 2014 1.02. The Authority and Katherine and Steven Pepple (the “Buyer") have proposed to enter into a Purchase and Redevelopment Agreement (the “Contract”), setting forth the terms and conditions of sale and redevelopment of certain property owned by the Authority, located at 4647 Polk Street and described as Lots 26 and 26, Block 1, Sheffields Second Subdivision to Columbia Heights, Anoka County, Minnesota (the “Property”). 1.03. Pursuant to the Contract, the Buyer will acquire the Property and will construct a single family home, subject further to the City’s zoning and building codes and policies. 1.04. The Authority has on this date conducted a duly noticed public hearing regarding the sale of the Property to the Buyer, at which all interested persons were given an opportunity to be heard. 1.05. The Authority finds and determines that conveyance of the Property to the Buyer has no relationship to the City’s comprehensive plan, in that no amendment or modification of the comprehensive plan is required for the conveyance or redevelopment of the Property. The activities of the parties under the Contract implement housing goals of the City’s Comprehensive Plan: “Promote and preserve the single-family housing stock as the community’s strongest asset.” and “Provide a variety of life-cycle housing opportunities within the community.” 1.06. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are in the public interest and will further the objectives of its general plan of economic development and redevelopment, because it will further the above-stated housing goals. Section 2. Authority Approval; Further Proceedings. 2.01. The Contract as presented to the Board, including the sale of the Property described therein, is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, including without limitation the deed, and to carry out, on behalf of the Authority, its obligations thereunder. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. th Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 4 day of August, 2014. President ATTEST: Secretary EDA Minutes Page 5 August 4, 2014 5/6. Resolution 2014-09 –HRA Levy Budget and Resolution 2014-10 EDA Levy Budget Hogeboom stated that these resolutions for the levy budgets are for the 2015 budget and cover all of the Community Development Department (EDA and Protective Inspections). Although some of the Department’s budget (Fund 201) is not controlled by the EDA, the EDA has historically reviewed and approved the entire Community Development Department budget. The budget is ultimately approved by the City Council. The 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 relatively straightforward due to the size of the department. This year’s budget includes an overall increase in Protective Inspection expenses and a decrease in overall EDA expenses. This is primarily due to the reallocation of funds from consulting services to salary expense to accommodate the Associate Planner position. At the same time, revenue is expected to decrease slightly in the EDA fund due to lack of receiving project-related grant money in 2014. Revenue is expected to increase in the Protective Inspections fund due to anticipated increased permit, license and fee income. The complete Community Development Department budget will be distributed to the City Council later in August. Staff recommends approval of the Levies as presented. Questions/comments from members: Nawrocki asked how action could be taken on the HRA levy when this is not an HRA meeting. He also questioned the two different levy amounts. Joe Kloiber explained to members that when the EDA was created in 1996 it oversees and administers the levies and funds for the HRA and EDA, both of which are used by the EDA. He went on to say that this is asking for approval of the levies, and not the entire budget for the expenditures, or for Parkview Villa which will be discussed and approved this fall. Kloiber reviewed the spreadsheet provided to members detailing the history of both the HRA and EDA levy amounts since 2008. He said the amount being levied is actually less than it was back in 2008 due to the fact that property values have decreased over the past seven years. Schmitt questioned the building maintenance and repair maintenance amounts in the 2014 figures. Hogeboom explained that was for the remodeling of the office and those expenditures should be done. She then asked if Parkview Villa is sold whether the HRA would be dissolved. Hogeboom stated that the HRA would have to continue for a period of time based on HUD rules. He said it would have to be researched whether a combined board could be formed. EDA Minutes Page 6 August 4, 2014 Hogeboom then told members that he received word that HUD’s approval letter has supposedly been mailed, but has not been received to date. Motion by Schmitt, seconded by Diehm, to waive the reading of Resolutions 2014-09 and 2014-10 there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Schmitt, to approve Resolution 2014-09, Resolution 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 2015. All ayes. MOTION PASSED. Motion by Schmitt, seconded by Williams, to approve Resolution 2014-10, Resolution of the Economic Development Authority (EDA) in and for Columbia Heights Adopting the 2015 budget and setting the EDA Levy. All ayes. MOTION PASSED. RESOLUTION NO. 2014-09 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 2015 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 2015; and WHEREAS, the EDA has before it for its consideration a copy of a budget for its operations for the fiscal year 2015 and the amount of the levy for collection in fiscal year 2015 shall be based on this budget. NOW, THEREFORE, Be It Resolved by the Board of Commissioners of the Columbia Heights Economic Development Authority: EDA Minutes Page 7 August 4, 2014 1. The budget of $230,775 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 of $176,578, which is .0185 percent of the market value in the City. 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 2015 and to take such other actions as are necessary to levy and certify such levy. Motion by: Williams Second by: Schmitt Motion passed this 4th day of August 2014 Attest by: _______________________________ ______________________________ Walter R. Fehst, Executive Director Gary L. Peterson, President EDA RESOLUTION 2014-10 RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS (EDA) ADOPTING THE 2015 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: EDA Minutes Page 8 August 4, 2014 1. The EDA adopts and recommends to the City Council for approval a budget of $230,775 for year 2015. 2. The EDA adopts and recommends to the City Council for approval a levy of $84,000 for year 2015. 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 4th day of August 2014 MOTION BY: Schmitt SECONDED BY: Williams Attest by: ___________________________ ____________________________ Walter R. Fehst, Executive Director Gary L. Peterson, President 7. Administrative Report Hogeboom updated the members on several matters as follows: a) Communications & Branding Campaign—A status report will be provided to the EDA, Planning & Zoning th Commission and the Parks & Recreation Commission on Monday, August 25 at Murzyn Hall. b) Scattered Site Housing Program Update—Lots are continuing to sell. Remax Realty will present a proposal to the EDA for a “remodel” option for consideration at one of the upcoming meetings. c) Northeast Office Center—Hogeboom told members that the Building has gone into foreclosure and Venture Bank now owns the property. Staff has reached out to them to see what the immediate plans are for the building, but they have not responded. Schuett Development still intends on purchasing the property and will develop affordable senior housing on floors two through six. Schuett will not purchase the property until funding is received from various sources. This will likely occur in late 2014 or 2015. He also noted that the outside brick wall of the patio/drive through area has deteriorated due to heavy snow last year. The wall has been stabilized, however it is still aesthetically unpleasing. The Fire Dept is following up with the owners due to the number of complaints we have received. Hogeboom then reminded members that back in May they had voted to approve a letter of support for the Schuett Company proposal for an affordable senior housing development project. They needed the letter in order to obtain their financing. Staff has now been informed that the Met Council is requiring a Resolution of support in addition to the letter that was previously approved for their grant. He explained that the grants EDA Minutes Page 9 August 4, 2014 from the Met Council would not be directly awarded to the developer, but to the City who would have to act as project manager during this redevelopment, and would be responsible for releasing the funds. He also informed members that since that meeting in May, the property has now gone into foreclosure and that staff has been told that all the remaining tenants must vacate the building. Hogeboom said he has heard many rumors including one that Schuett has decided they want to use the entire building for the housing project. Hogeboom explained this is zoned MXU which requires the main floor to be used for commercial purposes. If Schuett does intend to change the use, a request for re-zoning the property would have to be submitted for approval. Schuett reported to Hogeboom that his project still only involves plans for floors 2-6. Diehm noted for the record that she would not participate in any discussion regarding this matter, nor vote on anything as it could be construed as a conflict of interest. Nawrocki noted that the sheriff’s sale on this property is taking place in mid-August. He asked what plans Venture Bank had for the property. Hogeboom said he had reached out to Venture Bank to gather information, but they had not responded to his calls. He told members that he was attending a meeting at the th request of NE Bank representatives on Tuesday, August 6. They were meeting to discuss an extension of time so they had time to relocate. Schmitt asked if we could wait until after the Sheriff’s sale to consider this. Hogeboom stated the TOD funding by the Met Council is being considered in September, so they need the Resolution prior to that. Then it was asked what happens to the Resolution if someone else purchases the property at the Sheriff’s Sale. Hogeboom said if Schuett doesn’t get ownership of the property the grants and financing for the project would become null and void, so the Resolution would have no purpose. Peterson suggested the Resolution be tabled until after the meeting with Venture Bank and discuss this again once the City Manager and the other two commission members are present. The next regular EDA meeting will be Tuesday, Sept. 2, 2014 at City Hall at 6:30 pm. The meeting was adjourned at 7:15 pm. Respectfully submitted, Shelley Hanson Secretary