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HomeMy WebLinkAboutEDA AGN 05-04-15EDA RESOLUTION 2015 -06 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR MARCH, 2015 AND PAYMENT OF BILLS FOR THE MONTH OF MARCH, 2015. 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, 2015 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 4th Day of May, 2015. MOTION BY: SECONDED BY: AYES: President Attest By: Shelley Hanson, Secretary ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF MARCH 2, 2015 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, Bobby Williams, Marlaine Szurek, and Gerry Herringer. Newly elected Council Person John Murzyn was also present (not sworn in yet). Staff Present: Walt Fehst, Joseph Hogeboom, and Loren Wickham. PLEDGE OF ALLEGIANCE- RECITED 1. SWEAR IN MEMBERS- Gary Peterson, Donna Schmitt and John Murzyn took the Oath of Office. 2. ELECTION OF OFFICERS- Motion by Schmitt, seconded by Herringer, to elect officers as follows: President- Gary Peterson Vice President- Bobby Williams Secretary/Treasurer- Bruce Nawrocki All ayes. MOTION PASSED. 3. CONSENT ITEMS 1. Approve the Minutes from January 5, 2015. 2. Approve the Financial Report and Payment of Bills for December 2014 and January 2015 on Resolution 2015 -03. Ouestions by Members: Commissioner Nawrocki requested that the Financial Report pages be numbered going forward. Motion by Williams, seconded by Szurek, to waive the reading of Resolution 2015 -03, there being an ample amount of copies available to the public. All ayes. MOTIONPASSED. Motion by Szurek, seconded by Williams, to approve the consent agenda items as presented. All ayes. MOTIONPASSED. EDA MINUTES Page 2 March 2, 2015 EDA RESOLUTION 2015 -03 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR DECEMBER 2014 AND JANUARY 2015 AND PAYMENT OF BILLS FOR THE MONTHS OF DECEMBER 2014 AND JANUARY 2015. 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 December 2014 and January 2015 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 2nd day of March, 2015 MOTION BY: Szurek SECONDED BY: Williams AYES: All ayes President Attest By Secretary EDA Minutes Page 3 March 2, 2015 NEW BUSINESS 1. McComb Group Report- Jim McComb, president of the McComb Group, was present to review his market study of the Central Avenue corridor. McComb discussed the tenant mix along Central Avenue, traffic counts in the area, median household income, and employment data. Mr. McComb explained that Central Avenue represents a linear trade area that extends south into Minneapolis, and north to the Fridley/Blaine border. McComb went on to say that there is market potential within the Central Avenue trade area to add an additional 30,000 square foot grocery store. McComb explained that the grocery market is moving away from larger stores, and instead is trending towards smaller, more specialized stores. McComb does not believe that Central Avenue can support another 65,000 square foot store, similar to the former Rainbow Foods, as the corridor already hosts an Aldi's grocery store and a Super Target. There is also an existing Cub Foods store within the trade area. McComb stated that he believes that positive things are occurring in the north and south ends of the Central Avenue corridor, including the redevelopment of the former Blockbuster Video building and the redevelopment of the Heights Gateway site. However, more investment needs to occur in the middle area of the corridor, including the vicinity around the Central Valu Center. Hogeboom stated that staff will meet with Mr. McComb to discuss McComb's recommendations to the City and elaborate on them at the April meeting as part of the EDA's goal setting discussion. EDA Minutes Page 4 March 2, 2015 2. Proposal by Dominium for Sr. Housing in Huset Park Development Area- Hogeboom explained that Dominium Properties has proposed to construct two four -story attached senior apartment buildings at the northeast corner of University and 37`" Avenues. The total project would include 170 units. The project, which would be considered senior independent living, would contain mostly one - bedroom units, with additional two - bedroom units available. The proposed project would be located on the two undeveloped lots that are part of the final phases of the Huset Park development. Dominium Properties has also indicated interest in acquiring the final undeveloped Huset Park parcel located on the southwest corner of the Huset Parkway roundabout. That parcel would be held for future development. BNC Bank is currently the primary owner of all three undeveloped lots. Details for the proposed project, such as parking ratios, vehicular access points, stormwater retention and landscaping would be finalized through the City's Site Planning process. Before that process would begin, the developer would need to seek approval of an amendment to the Private Development Agreement for Huset Park. The original proposal for this area included 51 additional townhomes to the north, and 230 units of multi - family housing, as well as approximately 11,000 square feet of retail space, to the south. Market conditions have prevented further development from occurring in the Huset Park area in recent years. However, Dominium believes that the area directly north of Northeast Minneapolis, along University Avenue, is underserved by independent senior housing and believes that the development will be very successful in this location. Dominium has developed similar projects throughout the Twin Cities area, including two projects located in the Silver Lake Village area of St. Anthony. Dominium has offered to organize a tour for EDA and Planning /Zoning Commissioners through its project which is currently under construction along 39`h Avenue in St. Anthony. Staff believes this project presents an opportunity to complete the Huset Park development with high - quality senior housing, while partnering with the developer to install an entry monument into Columbia Heights along University Avenue. Hogeboom explained that no action is required at this time. He then introduced Ron Mehl, representative from Dominium Properties, who was present to discuss the proposed senior housing development. Stacie Kvilvang, representative from Ehler's, was also present to help address questions related to the financial impact of this proposed transaction. EDA Minutes Page 5 March 2, 2015 Presentation by Dominium: Ron Mehl and Eric Omdahl of Dominium Apartments told the EDA that they are interested in developing approximately 170 units of 55 +, tax credit housing at the northeast corner of the University and 37th Avenues intersection. Mehl stated that this project would not qualify for Tax Increment Financing, so Dominium asks that the EDA consider waiving park dedication fees as well as sewer and water access charges. Commissioner Schmitt stated that she felt the proposal is positive for the community, but she would prefer to see a commercial element included at the intersection. Commissioner Szurek stated that she believed the project will offer an option for seniors in the area, and that she appreciates the layouts and storage spaces provided in the proposed units. Commissioners Murzyn, Peterson and Williams stated that they felt the proposal would be beneficial for the area. Commissioner Herringer stated that he believes Dominium has a positive reputation in the community and that he feels they would bring forth a quality product. Commissioner Nawrocki stated that he believes the project is too large for the site. Mehl stated that they would likely approach the EDA to amend the Huset Park Development Agreement to allow the project to move forward later in the spring. Following EDA approval, the project would require Site Plan Approval by the Planning and Zoning Commission. 3. Branding Campaign Update- Based on the feedback received after their last presentation Replace has designed a set of final logo designs for the City to consider. Staff recommends the EDA select a preferred logo so Replace can complete Phase 2 of their proposal. Questions /Comments from members: Commissioner Szurek stated that she likes the clock tower graphic, but suggests that the dots and other unneeded elements be removed from the graphic. The group concurred with Szurek. President Peterson stated that he prefers "Direction 1" in the handout, but that staff should re- evaluate the proposed tagline. The current tagline is "Rediscover the Heights." Peterson suggested using a different term, such as "City of Peace." Staff will bring a final proposal to the EDA in April that identifies the preferred brand direction and recommended taglines. EDA Minutes Page 6 March 2, 2015 OTHER BUSINESS 1. EDA Strategic Planning Guide Hogeboom reminded members that in early 2014 the EDA participated in a group planning process, facilitated by Ehler's, in which a Strategic Planning Guide was created. The plan identified 5 goals as provided in the agenda packets. Staff would like to discuss the Strategic Planning Guide at the April EDA meeting. The next regular EDA meeting will be Monday, April 6, 2015 at City Hall at 6:30 pm. The meeting was adjourned at 9:12 pm. Respectfully submitted, Joseph S. Hogeboom Acting Secretary ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF APRIL 6, 2015 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, John Murzyn, Marlaine Szurek, Gerry Hettinger, and Bobby Williams (arrived at 6:35 pm). Staff Present: Walt Fehst, Joseph Hogeboom, Loren Wickham, and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED 1. CONSENT ITEMS Approve the Minutes from March 2, 2015. It was noted that they were not included in the agenda packets so they will be approved at the May meeting. 2. Approve the Financial Report and Payment of Bills for February 2015 on Resolution 2015 -04. Ouestions by Members: Hettinger asked what the payments to Carolyn Laine and Lighthouse Acquisitions were for. Hogeboom stated the Laine payment was for a rebate for housing improvements and the Lighthouse payment was for the 2014 annual tax abatement. He then asked what the revenue amount of $25,500 was for. The members were told it was the 2014 administration/servicing fees for Parkview Villa North. Motion by Szurek, seconded by Herringer, to waive the reading of Resolution 2015 -04, there being an ample amount of copies available to the public. All ayes. MOTIONPASSED. Motion by Szurek, seconded by Schmitt, to approve Resolution 2015 -04 Approving the Financial Statement and Payment of Bills for February 2015. All ayes. MOTIONPASSED. EDA RESOLUTION 2015 -04 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR FEBRUARY 2015 AND PAYMENT OF BILLS FOR THE MONTH OF FEBRUARY 2015. 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 EDA MINUTES Page 2 April 6, 2015 WHEREAS, the financial statement for the month of February 2015 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 April, 2015 MOTION BY: Szurek SECONDED BY: Schmitt AYES: All ayes President Attest By: Secretary NEW BUSINESS 1. EDA Goals and Oblectives Discussion- In early 2014, the EDA participated in a group planning process, facilitated by Ehler's which resulted in a Strategic Planning Guide. Staff thought this would be a good opportunity to discuss the goals and objectives to ensure continued focus on those identified in the Plan. Hogeboom reviewed the goals with the members and the progress that has been made thus far. He said some of the target dates were a little ambitious, but staff continues to work on them. EDA Minutes Page 3 April 6, 2015 Hogeboom explained that Goal #1 (enhance City Image) has been addressed with the Branding Campaign. He acknowledged that this project took longer than anticipated but the final design and logo will be presented at the April 27d' City Council meeting. Hogeboom stated that staff attempted to establish a neighborhood group which was part of Strategy #3, but found there were very few interested participants. Nawrocki said the Police Dept. has had some success reaching out to defined neighborhood areas and maybe that could be expanded by other departments. Hogeboom will discuss this possibility with Police staff. There was some discussion about publicity and the use of social media to promote city events. Schmitt feels the City could do abetter job with this. Hogeboom said some of this will be tweaked once the branding and logo is approved. He said calendars are automatically being placed on Facebook now. Goal #2 (determine location for City Library) — Hogeboom said this has been done. Use of the extra land still needs to be determined. Nawrocki stated this may be difficult since the piece will be quite a ways off Central so exposure is limited. Hogeboom agreed and said a lot will depend on whether Heights Rental remains there or relocates. Goal #3 (create redevelopment plan for Central Ave that will contribute to stability of businesses) — The Jim McComb study accomplished some of the strategies. Fehst told members that Bob Streetar has some students that are looking for a project to work on that would collect further data and then suggest development plans that could work in the area. Hogeboom stated the new Open to Business program that is provided by Anoka County also meets strategy #5. There was some discussion about strategy #6 and enforcement of the sign ordinance. Nawrocki commented about Jimmy's Pool Hall painted storefront and how that is in violation of our ordinance and he thinks staff should enforce it even if it is after the fact. Hogeboom said staff recently did a "sign blitz" along Central Avenue notifying owners who are in violation mainly because of temporary signage issues. Goal #4 (Housing programs and managing the number of rental properties) — Staff continues to work on development of the vacant lots, establishing a plan for the Heritage Heights and Circle Terrace area properties, and various housing assistance programs available to our residents. A new agreement for the scattered site program will come before the members in May and staff will also provide information on what other cities are doing in regards to Point of Sale Inspection programs. Goal #5 (Invest in City infrastructure) — Hogeboom said the 2018 comprehensive Plan Update will address a lot of these items. Nawrocki stated he would like to see an analysis of the Plan indicating the percentage of what has been accomplished thus far. Hogeboom said staff will work on that and provide a summary. EDA Minutes Page 4 April 6, 2015 2. Scattered Site Housing Program Update- Wickham explained that the EDA approved a Scattered Site Housing Program in 2013. This Agreement is expiring in May. The program consists of 3 components: 1. Master Listing Agreement: ReMax —Pete Heryla & John Rockwell Master. This document is an agreement with the EDA and Pete Heryla and John Rockwell to list and market the lots for sale currently at a sales price of $7,500 each. 2. Purchase and Redevelopment Agreement. This document is an agreement with the EDA and Timbercraft Homes. A Purchase and Redevelopment Agreement is required for the sale of each lot. This agreement determines the sales price, the model home type and completion date. 3.Model Homes. Timbercraft Homes currently provides 2 EDA approved models for buyers to choose from. Wickham told members there are some changes that could be made before renewing an agreement. Some of the ideas staff was seeking feedback on are the following items: • Staff recommends that we continue to utilize ReMax -Pete Heryla & John Rockwell as the listing agents for the program. *Staff recommends that ReMax reevaluate lot prices. Some may go up or down depending on location. • Staff recommends creating a set of design guidelines instead of 1 or 2 models. This would give buyers more options to choose from. • Staff recommends more flexibility for buyers to bring their own builder as long as they can meet the design guidelines. *Staff recommends continuing to require buyers to enter into a purchase and redevelopment agreement. *Staff recommends buyer to construct owner occupied single family housing and for buyers to sign a 10 year deed restriction agreeing to that. Staff is also looking into including additional lots the City and EDA own into the Scattered Sites program. Staff will prepare a map outlining current lots in the program as well as lots to be added for the EDA in May. Because of restrictions with the original funding source for acquisition and demolition the City or EDA may be restricted in adding lots to the program. Staff will have final documents and recommendations for you at the May 0 EDA meeting. Questions /comments from members: Members concurred that the project has been successful and they are happy with the finished product of those constructed so far. They also were open to consider the suggestions made by staff to encourage continued re- development of the remaining lots. EDA Minutes Page 5 April 6, 2015 6. Allocation of Funds to Rehab Incentive Pro ram - Resolution 2015 -05 Staff requests that the Columbia Heights Economic Development Authority (EDA) authorize the transfer of $525.00 of the allocated funding for the Columbia Heights Deferred Loan Program objective over to the Rehab Incentive Program objective. To honor existing Rehab Incentive Program applications that were submitted in 2014, an additional $525.00 is needed. The Deferred Loan Program currently has a balance of $9,488.62. Both programs are currently funded through the Capital Improvement Development Fund (420). Ouestions from members: Hogeboom explained there is no more money allocated for the rebate program to continue, so staff is not taking any new applications, however, the amount being requested is to cover the rebates that were in process. He also told members that funds are available to our residents through other entities such as Anoka County and MN Housing Finance Agency, so we are referring people to them. Motion by Williams, seconded by Nawrocki, to waive the reading of Resolution 2015 -05, there being an ample amount of copies available. All ayes. MOTIONPASSED. Motion by Williams, seconded by Szurek, to adopt Resolution 2015 -05, authorizing the Allocation of $525 within Fund 420 from the Single Family Deferred Loan Program to the Single Family Rehab Incentive Program. All ayes. MOTIONPASSED. EDA RESOLUTION NO. 2015-05 A RESOLUTION AUTHORIZING THE ALLOCATION OF $525 WITHIN FUND 420 FROM THE SINGLE FAMILY DEFERRED LOAN PROGRAM TO THE SINGLE FAMILY REHAB INCENTIVE PROGRAM. WHEREAS, the Economic Development Authority (EDA) established the Single Family Rehab Incentive Program in 2007 to partially subsidize the cost of home remodeling improvements to qualified residents, and WHEREAS, the EDA last authorized funds for the Rehab Incentive Program in May, 2012, and WHEREAS, the Single Family Rehab Incentive Program was intended to sunset when funding ended, and WHEREAS, to honor outstanding program applications, and additional $525.00 is needed to be allocated to the program fund, and WHEREAS, the Single Family Deferred Loan Program contains adequate funding to provide the final transfer. EDA Minutes Page 6 April 6, 2015 NOW THEREFORE BE IT RESOLVED The Economic Development Authority authorizes the allocation of $525.00 for the Rehab Incentive Program from Fund 420 - Department 46409 (Single Family Deferred Loan Program) to Fund 420 - Department 46408 (Single Family Rehab Incentive Program). Passed this 6"i day of April, 2015. Offered by: Williams Seconded by: Szurek Roll Call: All ayes President Walter Fehst, Executive Director OTHER BUSINESS Hogeboom told members there are some staffing issues at Parkview Villa that Staff and CommonBond are working on. The Manager and Asst. Manager have resigned since their jobs were going to be terminated at the time of closing. Staff is working to amend CommonBond's Contract to allow an Aeon employee to start early with CommonBond still being the responsible party for HUD reporting and enforcement of HUD rules. Hopefully this amendment will be brought to the HRA at the April 28a' meeting. In the meantime, CommonBond has temps covering the office. Hogeboom said the closing is still scheduled for May 15a'. Hogeboom told members that there is currently an offer on the NE Business Center. The person interested would like to turn the existing building into an entertainment venue for mid -size concerts and corporate events. He is not seeking any financial assistance. Hogeboom said if he moves forward with the purchase that the new use of the building will go before the Planning & Zoning Commission as well as the City Council for approvals. Hogeboom then passed out a handout from the recent North Metro Home and Garden Show that was sponsored by the Cities of Blaine, Fridley, and Mounds View. He said Spring Lake Park and New Brighton will be re joining and Columbia Heights has been invited to also join. Hogeboom told members there is a $2,000 one -time fee to join which covers advertising expenses. Hogeboom told members to think about whether they would like Columbia Heights to join in this venture even though it is not held nearby. Nawrocki said he would not be in favor of doing this and the other members said they would consider it at a later time. EDA Minutes Page 7 April 6,2015 The next regular EDA meeting will be Monday, May 4, 2015 at City Hall at 6:30 pm. The meeting was adjourned at 7:35 pm. 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O H P4 w a w x F Pd O F14 0 D w x F £ M WHO mom.+ � N m ••a af0a IC E H W ZH Zo fo % No H\ wHa NW tl U" W 4 a HI UI al I i NVVy; H I� I El I I w w I a I I wm W() I aa: al (- Fzl �+H I FQI Qz� Q m I FW Wl 0 U I 0 o awl al q Ezl F A I Q� I I ❑ I Pi WI WI UI Z wl I I I I I I I m m m m C H ro H a m 0 ti c ro W IY 4E, I o IZ W I o a Mo I W I I M W I H (n I H I � I WI W I a W F z H W C14 rn C1 P4 O U W w a w a o E O W F W W A £ � a a E 0 F M COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: May 4, 2015 AGENDA SECTION: Regular Business ORIGINATING EXECUTIVE NO:4 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Grand Central Properties — Development BY: Joe Hogeboom BY: Proposal DATE: April 28, 2015 BACKGROUND: Bruce Bahneman, of the C. Chase Company, in collaboration with Fe Equus (a Milwaukee -based development firm), is considering approaching the EDA to amend the Grand Central Properties' Contract for Private Development to construct two proposed rental apartment buildings at 4729 Grand Avenue NE and 1069 Grandview Way. The Contract for Private Development currently has a requirement that all developed housing units must be owner occupied. The plans currently reflect two condominium buildings on the site. A similar proposal for apartment buildings was brought to the EDA in 2011. That proposal was ultimately denied. If the EDA supports this proposal, the following sequence of events must occur: 1. EDA approval of an amendment to the Contract for Private Development. 2. Planning and Zoning Commission approval of Site Plan and Design Criteria. 3. Staff approval of Building, Stormwater Management and other plans. Mr. Bahneman has requested an audience with the EDA to better understand the community's desire to develop rental housing at this location and determine if he should proceed with his proposal. Mr. Bahneman will provide more detailed information about his proposal at the EDA meeting. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: May 4, 2015 AGENDA SECTION: Regular Business ORIGINATING EXECUTIVE NO:5 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: K -12 Schools in the Commercial Zoning BY: Joe Hogeboom BY: Districts DATE: April 29, 2015 Robert Grootwassink, president of Grootwassink Real Estate, currently owns the Columbia Heights Shopping Center located at the northeast corner of 40'h and Central Avenues. Global Academy, an elementary and middle charter school, is located within the shopping center. The site is located in the Central Business District, and does not permit K -12 schools. The school is considered a non - conforming use and cannot expand in its current location or relocate to another property within the commercially -zoned areas of the City. Mr. Grootwassink has indicated that Global Academy has an extensive waiting list of students, and would like to expand its size. Mr. Grootwassink would like to relocate the school to the Central Valu Center in portions of the former Rainbow Foods and Slumberland Clearance Center stores. In order to accomplish this proposal, the City would have to amend the General and Central Business Zoning District requirements to allow K -12 schools. The districts do currently permit trade schools and training centers. The Planning and Zoning Commission discussed allowing K -12 schools within the commercial zoning districts in 2014, and ultimately determined not to recommend the change to the City Council. The Commission felt at that time that allowing the use would interfere with the retail and business marketability of districts. Mr. Grootwassink feels that his plan to relocate Global Academy to the Central Valu Center and bring in a new charter school to the existing school location is viable, and he has requested an audience with the Economic Development Authority to discuss his plans. If the EDA would like to allow a charter school to be located in the Central Valu Center, then a change must be made to the Zoning Code to permit K -12 schools within the commercial zoning districts in the City. If the EDA were to consider the allowing K -12 schools in commercial areas, staff recommends doing so by use of the Conditional Use Permit process. Staff seeks direction from the EDA regarding whether or not to initiate the zoning amendment process. Attachments: 1. Letter from Robert Grootwassink, dated April 14, 2015 (1 page) 2. Proposed Central Valu Center Layout (2 pages) Grootwassink Real Estate 14675 Martin Drive, Suite 200 Eden Prairie, MN 55344 (952) 944 -1665 • Fax (952) 944 -2419 Joan M. Grootwassink Robert E. Grootwassink April 14, 2015 Joe Hogeboom Director City of Columbia Heights Community Development Department 590 405h Avenue NE Columbia Heights, MN 55421 Joseph .hogeboomOci.columbia - heights mn us Re: 4300 Central Ave. Dear Joe, It was a pleasure to see you again to talk about our company purchasing 4300 Central Ave. We are proposing to change the grocery store by enlarging the former Slumberland by 7,500 sq. ft., create 13,000 sq. ft. of small shops located in the front of the space. The rear of the space with entrance in the front of 48,000 sq. ft. for a Charter School. We would relocate our existing Charter School located at 40`h and Central for them to enlarge their size. Their enrollment would remain about the same but would allow an indoor basketball court. We would set aside the free stand location for a smaller grocery store up to 20, 000 sq. ft. Also we are trying to attract a Farmer's Market in the parking lot. We plan to do improvement for this in excess of 2 million dollars to make it look attractive and inviting for our customers. What we need is city approval for a school in this location. The existing Global Academy would become a smaller school. Please let me know if we can address your council in their next meeting. Sincerely, Robert E. Grootwassink Minneapolis -St. Paul- Bloomington, MN -WI Central Valu Center 4300 Central Avenue NE I Columbia Heights, MN 55421 45.04727, - 93.248945 44th Ave NE is I "" Proposed Our Pzrcel '�iiii sc .3 acres ' i .eau sv aIa.. 3:.6]3 aF 43rd Ave NE Center Size: 126,665 SF 01 66,314 SF 02 24,632 SF� Current Retailers 03 Ace Hardware 11,838 SF 04 Dollar Tree Z 05 f � t s 5 men.ele V B6.]IL Si 5,580 SF 43rd Ave NE Center Size: 126,665 SF 01 66,314 SF 02 24,632 SF� Current Retailers 03 Ace Hardware 11,838 SF 04 Dollar Tree 12,101 SF 05 Meineke Car Care Center 6,200 SF 10 Ace Hardware Storage 5,580 SF 100 Slumberland Clearance Center Storage 200 Ace Hardware Storage 14,071 SF 6442 Matthew Johnson 612.798.7964 matthew.johnson@brixmor.com R' Brixmor. ixmoccom iiw` This site plan indicates the general layout of the shopping center and is net a warranty, representation, or agreement on the part of the landlord that the shopping center will be exactly as depicted herein. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Mrvtino nf• kAnx, A 101 S BACKGROUND: The EDA approved a Scattered Site Housing Program in 2013. The program consists of 3 components: 1. Master Listing Agreement: ReMax —Pete Heryla & John Rockwell Master. This document is an agreement with the EDA and Pete Heryla and John Rockwell to list and market the lots for sale. An updated list with proposed lot prices will be available at the meeting. 2. Purchase and Redevelopment Agreement. This document is an agreement with the EDA and a licensed builder. A Purchase and Redevelopment Agreement that is required for the sale of each lot. This agreement determines the sales price, the house plan and completion date. 3. Model Homes. We are recommending a set of design requirements to replace the models. Staff is recommending the following changes to the Scattered Site Housing Program: • Staff recommends that we continue to utilize ReMax -Pete Heryla & John Rockwell as the listing agents for the program. • Staff recommends the revised listing prices for lots in the program. • Staff recommends adopting the design requirements instead of 1 or 2 models and authorizing staff to approve house plans submitted. • Staff recommends more flexibility for buyers to bring their own builder as long as they can meet the design requirements. • Staff recommends continuing to require buyers to enter into a purchase and redevelopment agreement. • Staff recommends buyer to construct owner occupied single family housing and for buyers to sign a 10 year deed restriction agreeing to that. • Staff recommends keeping the 15% payment in excess of $160,000 home sale. RECOMMENDED MOTIONS: Motion: Move to enter into new Master Listing Agreement with ReMax Motion: Move to adopt Design Requirements for Scattered Sites Housing Program Motion: Move to adopt changes to Purchase and Redevelopment Agreement for Scattered Sites Housing Program Motion: Move to adopt changes to Addendum B to Exclusive Right to Sell Listing Contract for Scattered Sites Housing Program EDA ACTION: AGENDA SECTION: Regular Business ORIGINATING EXECUTIVE DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: 6. Scattered Site Housing Program BY: Loren Wickham BY: DATE: April 29, 2015 BACKGROUND: The EDA approved a Scattered Site Housing Program in 2013. The program consists of 3 components: 1. Master Listing Agreement: ReMax —Pete Heryla & John Rockwell Master. This document is an agreement with the EDA and Pete Heryla and John Rockwell to list and market the lots for sale. An updated list with proposed lot prices will be available at the meeting. 2. Purchase and Redevelopment Agreement. This document is an agreement with the EDA and a licensed builder. A Purchase and Redevelopment Agreement that is required for the sale of each lot. This agreement determines the sales price, the house plan and completion date. 3. Model Homes. We are recommending a set of design requirements to replace the models. Staff is recommending the following changes to the Scattered Site Housing Program: • Staff recommends that we continue to utilize ReMax -Pete Heryla & John Rockwell as the listing agents for the program. • Staff recommends the revised listing prices for lots in the program. • Staff recommends adopting the design requirements instead of 1 or 2 models and authorizing staff to approve house plans submitted. • Staff recommends more flexibility for buyers to bring their own builder as long as they can meet the design requirements. • Staff recommends continuing to require buyers to enter into a purchase and redevelopment agreement. • Staff recommends buyer to construct owner occupied single family housing and for buyers to sign a 10 year deed restriction agreeing to that. • Staff recommends keeping the 15% payment in excess of $160,000 home sale. RECOMMENDED MOTIONS: Motion: Move to enter into new Master Listing Agreement with ReMax Motion: Move to adopt Design Requirements for Scattered Sites Housing Program Motion: Move to adopt changes to Purchase and Redevelopment Agreement for Scattered Sites Housing Program Motion: Move to adopt changes to Addendum B to Exclusive Right to Sell Listing Contract for Scattered Sites Housing Program EDA ACTION: C�i COLUMBIA HEIGHTS Scattered Site Housing Program Design Requirements The development of all sites within the Scattered Sites Housing Program is subject to the City of Columbia Heights Zoning Code and the development criteria below, as reviewed and approved by the Community Development Director. Housing design is a significant element of 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, synthetic wood (fiber cement) siding resembling horizontal lap siding, such as Hardiplank and similar materials. The use of brick, stone and /or stucco is encouraged on the front facade. 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. L 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. 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. 1. 2. 3. 4. 5. PURCHASE AND REDEVELOPMENT AGREEMENT Parties. This Purchase Agreement is made as of , 20 between the COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of Minnesota having its office located at 590 40T11 Avenue NE, Columbia Heights, MN (the "Seller "), and (the "Buyer "). Offer /Acceptance. Buyer offers to purchase and Seller agrees to sell real property legally described as follows (the "Property"): [INSERT LEGAL DESCRIPTION] Price and Terms. The price for the Property is pay as follows: Earnest money of which Buyer shall by check, receipt of which is hereby acknowledged by Seller, and the balance of to be paid by certified check on the Date of Closing. The "Date of Closing" shall be , or such other earlier or later date as the parties mutually agree. Personal Property Included in Sale. There are no items of personal property or fixtures owned by Seller and currently located on the Property for purposes of this sale. Deed. Upon performance by Buyer, Seller shall deliver a quit claim deed conveying title to the Property to Buyer, in substantially the form attached as Exhibit A (the "Deed "). 421009x45 CL205 -49 6. Real Estate Taxes and Special Assessments. The parties agree and understand that the Property is exempt from real estate taxes for taxes payable in the current year. Seller shall pay on Date of Closing all special assessments levied against the Property as of the date of this agreement, including those certified for payment with taxes due and payable in 20_. [Insert if true: Seller represents that there are no special assessments pending as of the date of this agreement.] If a special assessment becomes pending after the date of this agreement and before the Date of Closing, Buyer may, as Buyer's option: A. Assume payment of the pending special assessment without adjustment to the purchase agreement price of the Property; or B. Require Seller to pay the pending special assessment and Buyer shall pay a commensurate increase in the purchase price of the Property, which increase shall be the same as the estimated amount of the assessment; or C. Declare this agreement null and void by notice to Seller, and earnest money shall be refunded to Buyer. 7. Closing Costs and Related Items. The Seller shall be responsible for the following costs: (a) recording fees and conservation fees for all instruments required to establish marketable title in Seller; (b) deed transfer taxes and conservation fees required to be paid in connection with the Deed be given by Seller; and (c) Seller's broker fees. Buyer shall be responsible for the payment of the following costs: (d) recording fees required to be paid in connection with the Deed to be given by Seller; (e) the cost of the registered property abstract or updated abstract, or in the absence of an abstract, the cost of the premium for an owner's policy of title insurance, and (f) closing fee, if any. Each party shall be responsible for its own attorneys' fees and costs. 8. Sewer and Water. Seller warrants that city sewer is available at the Property line, and that city water is available in the right of way adjacent to the Property. Seller makes no warranty regarding the conditions of any existing water stub from the main to the Property line. Seller advises Buyer to inspect the condition of the water stub. 9. Condition of Property. Buyer acknowledge that they have inspected or have had the opportunity to inspect the Property and agree to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the dwelling described in section 14 below. If the soil is determined to be unacceptable the Buyer may rescind this agreement by written notice to the Seller, in which case the agreement shall be null and void and all earnest money paid hereunder shall be refunded to the Buyer. Seller makes no warranties as to the condition of the Property. 10. Marketability of Title. As soon as reasonably practicable after the date of this Agreement, Seller shall furnish to Buyer a registered property abstract or an updated 421009v45 CL205 -09 abstract of title to the Property, certified to date to include proper searches covering bankruptcies, state and federal judgment and liens. In the absence of an abstract of title, the Seller will provide a title commitment and title insurance. Buyer shall have fifteen (15) business days after receipt of the abstract or title commitment to examine the same and to deliver written objections to title, if any, to Seller. Seller shall have the greater of (i) the number of days remaining until the Date of Closing or (ii) thirty (30) days to have such objections removed or satisfied. 11. Title Clearance and Remedies. If Seller shall fail to have title objections timely removed, the Buyer may, at its sole election: (a) terminate this Agreement without any liability on its part; in which event the earnest money shall be promptly refunded in exchange for a quit claim deed to the Property from Buyer; or (b) take title to the Property subject to such objections. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: A. Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; B. Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: C. Seek damages from Seller including costs and reasonable attorney's fees; D. Seek specific performance within six months after such right of action arises 12. Well Disclosure. Seller certifies that Seller does not know of any wells on the Property. 13. Individual Sewage Treatment System Disclosure. Seller certifies that there is no individual sewage treatment system on or serving the Property. 14. Construction and Sale of Dwelling. Buyer agrees that it will construct a new single family dwelling on the Property, intended for sale to a person or persons for residential occupancy (an "Owner Occupant "). This covenant shall survive the delivery of the Deed. A. The single family dwelling described in this Section is referred to as the "Minimum Improvements." 3 421009v45 CL205 -49 B. The Minimum Improvements shall consist of a house with approximately square feet, _ bedrooms, and shall be constructed substantially in accordance with the general plans e —Msdel Scattered Site Housing Program Design Requirements on file in City Hall. Construction plans must be approved by the Community Development Department prior to commencement of construction. Construction of the Minimum Improvements must be substantially completed by , 20 . Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of Columbia Heights building official. C. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Buyer to construct such Minimum Improvements (including the date for completion thereof), the Seller will furnish the Buyer with a Certificate of Completion for such improvements. Such certification by the Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed with respect to the obligations of the Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof The certificate provided for in this Section of this Agreement shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Property. If the Seller shall refuse or fail to provide any certification in accordance with the provisions of this Section, the Seller shall, within thirty (30) days after written request by the Buyer, provide the Buyer with a written statement, indicating in adequate detail in what respects the Buyer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Seller for the Buyer to take or perform in order to obtain such certification. D. The Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (1) Except for any sale to an Owner Occupant, the Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer "), without the prior written approval of the Seller's board of commissioners. The term "Transfer" does not include encumbrances made or granted by way of security for, and only 4 421009v45 CI205 -49 for, the purpose of obtaining construction, interim or permanent financing necessary to enable the Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. (2) If the Buyer seeks to effect a Transfer to any person or entity other than an Owner Occupant prior to issuance of the Certificate of Completion, the Seller shall be entitled to require as conditions to such Transfer that: (i) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Seller, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Buyer as to the portion of the Property to be transferred; and (ii) Any proposed transferee, by instrument in writing satisfactory to the Seller and in form recordable in the public land records of Anoka County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of the Seller, have expressly assumed all of the obligations of the Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Seller) deprive the Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that the Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by the Seller to the contrary, no such transfer or approval by the Seller thereof shall be deemed to relieve the Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the 5 421009x45 CL20549 Property governed by this subsection E. shall be in a form reasonably satisfactory to the Seller. (3) If the conditions described in paragraph (2) above are satisfied then the Transfer will be approved and the Buyer shall be released from its obligation under this Agreement, as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (3) apply to all subsequent transferors. (4) Upon issuance of the Certificate of Completion, the Buyer may Transfer the Property and/or the Buyer's rights and obligations under this Agreement with respect to such Property without the prior written consent of the Seller [, except to the extent required under paragraph F of this Section]. E. The Buyer, and its successors and assigns, agree that they (a) will use the Minimum Improvements only as a single family dwelling, and in the case of an Owner Occupant, will occupy the Property as a residence, (b) will not rent the Property to any person or entity, (c) will not seek exemption from real estate taxes on the Property under State law, and (d) will not transfer or permit transfer of the Property to any entity whose ownership or operation of the Property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of Columbia Heights or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for —ten years after the Date of Closing. F. The Buyer shall use its best efforts to convey the Property (either before or after issuance of the Certificate of Completion) to an Owner Occupant whose household income does not exceed (a) 100% of median income in the case of one or two person household Owner Occupants, or (b) 115% of median income in the case of three or more person Owner Occupants. The term "median income" means the median income in the seven - county metropolitan area, or the State as a whole, whichever is greater, using income data available from the Minnesota Housing Finance Agency as of the date of closing on sale to the Owner Occupant. Prior to closing on sale the Property by Buyer to an Owner Occupant, Buyer shall: (1) Notify the Seller in writing whether the proposed Owner Occupant will meet the income qualifications under this paragraph; and (2) If the proposed Owner Occupant will not meet the income limits, describe Buyer's efforts to find an income - qualified buyer; and 6 421009v45 CL20549 (2) If the proposed Owner Occupant will meet the income limits, submit to Seller evidence of Owner Occupant's income in a form satisfactory to Seller, evidencing compliance with the income limits described above. The covenant in this Section applies only to the first sale of the Property to an Owner Occupant, and does not apply to any subsequent sale by an Owner Occupant to any other person or party- 15. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to the Buyer and prior to receipt by the Buyer of the Certificate of Completion for of the Minimum Improvements, the Buyer, subject to Unavoidable Delays (as hereafter defined), fails to cant' out its obligations with respect to the construction of the Minimum hirprovements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from the Seller to the Buyer to do so, then the Seller shall have the right to re -enter and take possession of the Property and to terminate (and revest in the Seller) the estate conveyed by the Deed to the Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Buyer and failure on the part of the Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Seller at its option may declare a termination in favor of the Seller of the title, and of all the rights and interests in and to the Property conveyed to the Buyer, and that such title and all rights and interests of the Buyer, and any assigns or successors in interest to and in the Property, shall revert to the Seller, but only if the events stated in this Section have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this Section, the Seller shall have no right to reenter or retake title to and possession of a portion of the Property for which a Certificate of Completion has been issued. For the purposes of this Agreement, the term "Unavoidable Delays" means delays beyond the reasonable control of the Buyer as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the Seller in exercising its rights under this Agreement) which directly results in delays. Unavoidable Delays shall not include delays in the Buyer's obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under this section of this Agreement. 7 421009v4� CU05 -49 16. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in the Seller of title to and/or possession of the Property or any part thereof as provided in Section 16, the Seller shall apply the purchase price paid by the Buyer under Section 4 of this Agreement as follows: (a) First, to reimburse the Seller for all costs and expenses incurred by the Seller, including but not limited to proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by the Seller from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by the Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in the Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof; and any amounts otherwise owing the Seller by the Buyer and its successor or transferee; and (b) Second, to reimburse the Buyer for the balance of the purchase price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to the Buyer upon delivery of an executed, recordable warranty deed to the Property by the Buyer to the Seller. 17. Time is of the essence for all provisions of this contract. 18. Notices. All notices required herein shall be in writing and delivered personally or mailed to the address shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 19. Minnesota Law. This contract shall be governed by the laws of the State of Minnesota. 20. Specific Performance. This Agreement may be specifically enforced by the parties, provided that an action is brought within one year of the date of alleged breach of this Agreement. 21. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Seller or Buyer is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No 8 421009v45 CL20549 delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 22. No Merger of Representations, Warranties. All representations and warranties contained in this Purchase Agreement shall not be merged into any instruments or conveyance delivered at closing, and the parties shall be bound accordingly. 23. Recording. This Agreement shall be filed of record with the Anoka County Registrar of Titles or Office of Recorder, as the case may be. Buyer shall pay all recording costs. 9 421009x45 CL205 -09 In witness of the foregoing, the parties have executed this agreement on the year and date written above. SELLER: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Its President STATE OF MINNESOTA COUNTY OF ANOKA } ss. Its Executive Director The foregoing was acknowledged before me this day of 20, by and , the President and Executive Director of Columbia Heights Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. S -1 421009v45 CL20549 BUYER: M STATE OF MINNESOTA } ss. COUNTY OF ANOKA The foregoing was acknowledged before me this _ the of on behalf of the This document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza Minneapolis, MN 55402 S -2 421009v45 CL205 -49 day of 20_, by a Minnesota EXHIBIT A to PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF QUIT CLAIM DEED THIS INDENTURE, between the Columbia Heights Economic Development Authority, a Minnesota, a public body corporate and politic (the "Grantor "), and , a Minnesota (the "Grantee "). WITNESSETH, that Grantor, in consideration of the sum of $ and other good and valuable consideration the receipt whereof is hereby acknowledged, does hereby grant, bargain, quitclaim and convey to the Grantee, its successors and assigns forever, all the tract or parcel of land lying and being in the County of Anoka and State of Minnesota described as follows, to -wit (such tract or parcel of land is hereinafter referred to as the "Property "): To have and to hold the same, together with all the hereditaments and appurtenances thereunto belonging. SECTION 1. It is understood and agreed that this Deed is subject to the covenants, conditions, restrictions and provisions of an agreement recorded herewith entered into between the Grantor and Grantee on the of , 20_, identified as "Purchase and Redevelopment Agreement' ' (hereafter referred to as the "Agreement ") and that the Grantee shall not convey this Property, or any part thereof, except as permitted by the Agreement until a certificate of completion releasing the Grantee from certain obligations of said Agreement as to this Property or such part thereof then to be conveyed, has been placed of record. This provision, however, shall in no way prevent the Grantee from mortgaging this Property in order to obtain funds for the purchase of the Property hereby conveyed or for erecting the Minimum Improvements thereon (as defined in the Agreement) in conformity with the Agreement, any applicable development program and applicable provisions of the zoning ordinance of the City of Columbia Heights, Minnesota, or for the refinancing of the same. It is specifically agreed that the Grantee shall promptly begin and diligently prosecute to completion the redevelopment of the Property through the construction of the Minimum Improvements thereon, as provided in the Agreement. Promptly after completion of the Minimum Improvements in accordance with the provisions of the Agreement, the Grantor will furnish the Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall be (and it shall be so provided in the A -1 421009v45 CL205 -49 certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants of the Agreement and of this Deed with respect to the obligation of the Grantee, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Grantee to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the purchase of the Property hereby conveyed or the Minimum Improvements, or any part thereof. All certifications provided for herein shall be in such form as will enable them to be recorded with the County Recorder, or Registrar of Titles, Anoka County, Minnesota. If the Grantor shall refuse or fail to provide any such certification in accordance with the provisions of the Agreement and this Deed, the Grantor shall, within thirty (30) days after written request by the Grantee, provide the Grantee with a written statement indicating in adequate detail in what respects the Grantee has failed to complete the Minimum hnprovements in accordance with the provisions of the Agreement or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Grantor, for the Grantee to take or perform in order to obtain such certification. SECTION 2. The Grantee's rights and interest in the Property are subject to the terms and conditions of Sections 14A, 14B and 15 of the Agreement relating to the Grantor's right to re -enter and revest in Grantor title to the Property under conditions specified therein, including but not limited to termination of such right upon issuance of a Certificate of Completion as defined in the Agreement. SECTION 3. The Grantee agrees for itself and its successors and assigns to or of the Property or any part thereof, hereinbefore described, that the Grantee and such successors and assigns shall comply with Section 14E of the Agreement for a period of —ten years after the date hereof. It is intended and agreed that the above and foregoing agreements and covenants shall be covenants running with the land for the respective terms herein provided, and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in this Deed, be binding, to the fullest extent permitted by law and equity for the benefit and in favor of, and enforceable by, the Grantor against the Grantee, its successors and assigns, and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. In amplification, and not in restriction of, the provisions of the preceding section, it is intended and agreed that the Grantor shall be deemed a beneficiary of the agreements and covenants provided herein, both for and in its own right, and also for the purposes of protecting A -2 421009v45 CL205-49 the interest of the community and the other parties, public or private, in whose favor or for whose benefit these agreements and covenants have been provided. Such agreements and covenants shall run in favor of the Grantor without regard to whether the Grantor has at any time been, remains, or is an owner of any land or interest therein to, or in favor of, which such agreements and covenants relate. The Grantor shall have the right, in the event of any breach of any such agreement or covenant to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled; provided that Grantor shall not have any right to re -enter the Property or revest in the Grantor the estate conveyed by this Deed on grounds of Grantee's failure to comply with its obligations under this Section 3. Grantor certifies that it does not know of any wells on the Property. A -3 421009v4l CL205 -49 IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its behalf by its President and Executive Director and has caused its corporate seal to be hereunto affixed this day of 20_ COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF ) On this day of 20_, before me, a notary public within and for County, personally appeared and to me personally known who by me duly sworn, did say that they are the President and Executive Director of the Columbia Heights Economic Development Authority (the "Authority ") named in the foregoing instrument; that the seal affixed to said instrument is the seal of said Authority; that said instrument was signed and sealed on behalf of said Authority pursuant to a resolution of its governing body; and said and acknowledged said instrument to be the free act and deed of said Authority. Notary Public This instrument was drafted by: Kennedy & Graven, Charted (SJB) 470 U.S. Bank Plaza Minneapolis, MN 55402 A -4 421009x4.5 CL20549 EXHIBIT B To PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF CERTIFICATE OF COMPLETION WHEREAS, the Columbia Heights Economic Development Authority, a public body, corporate and politic (the "Grantor "), conveyed land in Anoka County, Minnesota to , a (the "Grantee "), by a Deed recorded in the Office of the County Recorder [and in the Office of the Registrar of Titles] in and for the County of Anoka and State of Minnesota, as Document Numbers and respectively; and WHEREAS, said Deed contained certain covenants and restrictions set forth in Sections 1 and 2 of said Deed; and WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Grantor to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Grantee have been completed and the above covenants and conditions in said Deed and the agreements and covenants in Sections 14A and 14B of the Agreement (as described in said Deed) have been performed by the Grantee therein, and the County Recorder [and the Registrar of Titles] in and for the County of Anoka and State of Minnesota are hereby authorized to accept for recording and to record, the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions of Sections 14A and 14B of the Agreement and the covenants and restrictions set forth in Sections 1 and 2 of said Deed; provided that the covenants set forth in Sections 14E of the Agreement, and in Section 3 of the Deed, remain in full force and effect through the period stated thereon. Dated: 20 B -1 421009v45 CL205 -49 COLUMBIA HEIGHTS ECONOMIC DEVELOPMEN AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this _ day of 20_, by and , the President and Executive Director, respectively, of the Columbia Heights Economic Development Authority, on behalf of the authority. Notary Public This document drafted by: KENNEDY & GRAVEN, CHARTERED 470 U.S. Bank Plaza Minneapolis, MN 55402 (612) 337 -9300 B -2 421009v45 CL205 -49 ADDENDUM B TO EXCLUSIVE RIGHT TO SELL LISTING CONTRACT DATED , 28432W In negotiating sales of all lots of the Property, Broker will use the form of Purchase and Redevelopment Agreement attached hereto (the "Purchase Agreement "), subject to any modifications approved by Seller's Community Development Director. 2. Broker agrees and understands that Seller's goal is to sell all lots of the Property to builders who will construct single family homes for sale to persons who meet the income limits set forth in the Purchase Agreement. Broker will use its best efforts to market all lots to builders who will, in turn, agree to use their best efforts to sell completed homes to income - qualified buyers. 3. Broker further agrees and understands that builders will be required to construct a home on each lot using one ofthfee models app-, ved by Sell° in compliance with the City of Columbia Heights Scattered Site Housing Program Design Requirements (the "Design Requirements "l; the specific medeldesign for each lot will made with approval °tbe approved by Seller's Community Development DireeterDenartment. and such approval will be speeified 4n required under the Purchase Agreement. One exception to this provision is the lot at 4303 Reservoir, for which Broker will consult with Seller and proposed buyer regarding the design and specifications for the house. 4. Acceptance of any offer from a buyer for any lot, will be subject to: (a) Consultation with Seller's Community Development Dir- eeterDenartment as to: purchase price; the size and medeldesJi n of the single family home to be constructed; and construction deadlines for the home. (b) Approval of the Purchase Agreement by Seller's board of commissioners. (c) Seller's board of commissioners having held a public hearing regarding the subject lot (which hearing may be held in the aggregate for the entire Property). 5. During st ach year &0 nn the term of this Agreement, the Broker will list all pafeels of the Property at the priees shown on Addendum A. Fr-effi and after 1, first of the date of this A ....,.,.meat aeh pareel m ...t 1.° l:sqt °.7 under the - lowifIg-terxrs: (a) at egos:«g e sale from Seller to builder, the builder must « at least the list price ..1...wn in Addendum A.aetermine the appropriate sale price for each lot, subject to annual review and approval by the Seller. nm. < T." 94210 ov ?05A9 (b) if the builder sells the completed house (including land and building) to an Owner Occupant (as defined in the Purchase Agreement) for price exceeding $160,000, then the builder shall pay to Seller 15% of the amount by which the final purchase price exceeds $160,000. Such additional payment is due upon closing of the sale by builder to the Owner Occupant. (c) For example, assume Seller sells Parcel A to builder for $7,500. Builder completes a house and sells to Owner - Occupant for $170,000. Upon closing on that sale, builder shall pay to Seller an additional $1,500, or 15% of the $10,000 excess purchase price. (d) Each Purchase Agreement entered into during the second year of the term of this Agreement shall be adjusted to reflect substantially the terms described in this Section. (e) This Section does not apply to the parcel at 4303 Reservoir Boulevard; the list price for that parcel will remain as shown in Addendum for the term of this Agreement. 6. Broker and Seller agree and understand that Broker intends to work closely with Timbercraft Homes (the `Builder "), which Builder expects to acquire one or more lots and build single family homes for resale to Owner Occupants (as defined in the Purchase Agreement). Broker may sell any or all lots to Builder, provided that nothing in this Agreement is intended to give the Builder any rights under this Agreement, or any rights with respect to any lot, or to preclude sales of lots to any other person or entity. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: May 4, 2015 AGENDA SECTION: Regular Business ORIGINATING EXECUTIVE NO:7 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: North Metro Community Home and BY: Joe Hogeboom BY: Garden Show DATE: April 28, 2015 BACKGROUND: The City of Columbia Heights has been invited to participate in the North Metro Community Home and Garden Show. The Show is currently sponsored by the cities of Blaine, Fridley and Mounds View. It is designed to benefit both the citizens and businesses who participate, while helping inspire, encourage and support homeowners who want to improve their homes and yards. Attendees of the Show are able to meet with and learn from experienced professionals who offer the latest product information. They will also have the opportunity to learn from experts at seminars scheduled throughout the Show hours. Each participating city has a booth at the Show where residents can interface directly with staff. The City of New Brighton has also been invited to join the Show. Participation in the Show requires a one- time payment of $2,000 to the Fridley Housing and Redevelopment Authority. The payment is meant to cover operational and advertising costs. Motion: Move to authorize the EDA President and Executive Director to execute and agreement with the Fridley Housing and Redevelopment Authority (HRA) designating Columbia Heights as a co- sponsor of the North Metro Home and Garden Show and allocating a one -time payment of $2,000 to the Fridley HRA for operational costs. ATTACHMENT: 1. Agreement with the Fridley Housing and Redevelopment Authority (2 pages) ACTION: AGREEMENT This agreement is made between the Fridley Housing Redevelopment Authority (hereinafter the "Fridley HRK) and the Columbia Heights Economic Development Authority (hereinafter, the "Columbia Heights EDA ") on this day, 2015. The City of Columbia Heights agrees to annually co- sponsor a multi- community home and garden show with the cities of Blaine, Fridley and Mounds View. The one day show, to be known as the North Metro Home and Garden Show, is typically held at the National Sports Center in Blaine, MN each February from 9:00 a.m. to 3:00 p.m, on a Saturday. The Show encompasses many aspects of home building or home remodeling, and is intended to serve as a benefit to the residents of the cities sponsoring the event. The Fridley HRA agrees to act as the fiscal agent responsible for the finances associated with the Show. The Columbia Heights EDA agrees to pay $2,000 to the Fridley HRA as its share of the costs to be incurred by the Fridley HRA for the additional costs of including Columbia Heights as a show sponsor of the North Metro Home and Garden Show. Except for any breach of the representation of the Fridley HRA, any willful misrepresentation of any willful or wanton misconduct of the Fridley HRA, or the negligence or other wrongful act or omission of any officers, agents and employees of the Fridley HRA, the Columbia Heights EDA agrees to indemnify and hold harmless the Fridley HRA and its officers, agents, employees against any claim, demand, suit, action, or other proceeding arising pursuant to the Agreement resulting from actions or failures to act by the Fridley HRA or its governing body members, officers, agents, or employees, provided that the foregoing indemnification shall not be effective for any actions of the Fridley HRA that are not contemplated by this Agreement. The Fridley HRA acknowledges that it is has sole responsibility for paying all amounts due to various parties servicing the North Metro Home and Garden Show. The Fridley HRA agrees that the $2,000 paid by the Columbia Heights EDA pursuant to this agreement will be used for the additional costs associated with changes to the website and promotional materials necessary to include Columbia Heights as a show sponsor. The money is non - refundable, should Columbia Heights ever decide to stop participating in the show. The Fridley HRA acknowledges that the City of Columbia Heights is entitled to the use of a booth at the North Metro Home and Garden Show. FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY By Lawrence R. Commers Its Chair By: Walter T. Wysopal Its Executive Director COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Its President By: Its Executive Director COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: May 4, 2015 AGENDA SECTION: Regular Business ORIGINATING EXECUTIVE NO:8 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Community Farmer's Market Discussion BY: Joe Hogeboom BY: DATE: April 28, 2015 BACKGROUND: Several members of the community have expressed interest in starting a farmer's market. While some local farmer's markets are managed by businesses or non - profit organizations, some farmer's markets are operated and subsidized by local governments. Management of government- initiated farmer's markets is typically done through park and recreation departments. In this case, cities must offer financial assistance to subsidize the cost of running the event. If the City were to initiate a city operated or sponsored farmer's market, it may be advantageous to discuss doing so in coordination with the development of the new municipal Library. The Community Development Department could assist in the process by doing research into set -up requirements. Anoka County will be applying for State Health Improvement Program grant funds later this year that could be used for farmer's market planning and implementation. The City Council /Economic Development Authority would need to consider whether a government- sponsored farmer's market is a priority of the City, and if so, whether or not additional long term funding for the Recreation Department would be acceptable in order for the city to operate a farmer's market. The Community Development Department seeks further direction from the EDA to better understand its role in the planning process for a possible government- sponsored /subsidized farmer's market. ATTACHMENT: 1. "Starting a Farmer's Market" (12 pages) STARTING A FARMERS' MARKET OBJECT IVES Every farmers' market begins differently. The surroundings will have a major effect on your market. But the main objectives are usually the same. The market should provide an outlet for the farmer profitably to sell his produce and to make fresh, wholesome produce available to people who would not have otherwise had any other opportunity to receive it. This could also improve diets of your community. A successful market also can rejuvenate a downtown economy. Determine what you want your market to do for you as vendors. Have a plan. STARTTHE PLANNING PROCESS EARLY The planning of an efficient market needs to be started early. The entire process can take several years to get the market off and running. There are many things that need to be done in advance. The securing of a site is very vital to this process. You need to obtain permits, licensees, and contracts need to be executed and signed. This takes time to accomplish. MAKE LOCAL INQUIRIES - RECRUIT FARMERS You must have interested farmers that will be committed to bringing produce every week to the market. Before recruiting the farmers, gather facts and information. Visit and talk with existing farmers' markets. Prepare a written handout stating the objectives you are trying to accomplish. Take these handouts with you when recruiting so that they may review the information that you have discussed with them. Place your name and phone number on the handout so that they can call you with any questions. When recruiting farmers get their name, address and phone number so that you can contact them at a later date informing them of the progress or for soliciting their help. Some of the following organizations may be a good source to obtain farmers: • Community Garden Clubs • School or University Ag Departments • Local county extension service • County Farm Bureau or Farmers Union • Food Banks • Consumer Cooperatives • Church Groups • Service Organizations (Elks, Rotary, etc.) • Chamber of Commerce Once you start making contacts with farmers it can be easier because of their contacts and the list may grow via word of mouth. USETHEMEDIA Sometimes the media will have special "spots- that are free for a community project such as a new market. Call and ask if that is anything they have available. Newspapers usually have a special community event section that may be done free of charge. Some radio stations will do free public service announcements or short "community interest" bulletins. This is not to advertise the market but to announce an organi- zational meeting. Television should be saved to emphasize a major event such as opening day. HOLD INFORMATIONAL I DEVELOPMENTAL MEETINGS After you have contacted several interested farmers who have shown some interest, plan a meeting to get them involved with the initial planning of the market. Share with them what should come from the market. Explain to them the advantages of selling at the farmers' market. Following are some of the advantages in selling at the market: • Higher return • Growers set their own price (within reason) • Cash sales, immediate payment • Can help maximize utilization of family labor • Gives opportunity to meet the consumers of their products • Provides an additional outlet for their produce DECIDE IF THERE IS ENOUGH INTERESTED VENDORS Survey area in which market will be held to solicit farmers. If there are enough interested vendors you then need to survey what produce each vendor grows. You need a variety of produce and the quantity needs to meet the demand. The growers need to make a firm commitment so that when the market opens their will be vendors to supply it. A good way to do this is to develop an application with a possible set of rules that will be used at the market. Decide what type of market you are going to establish. Just produce grown in MN only or allow produce from other states Resale items Crafts Some Farmers' Markets groups' idea is to have it be considered a farmers' market was just to offer fresh MN grown produce. Once you start with resale items and crafty items it takes away the meaning of a true farmers' market. FORM COMMITTEES TO OBTAIN INFORMATION ON SOME OF THE FOLLOWING TASKS. Assess start up costs with initiating a farmers' market. Some of the initial costs that you may incur are site expenses and advertising. Some cost - effective choices to investigate are parking lots of malls or chain stores, park land, church parking lots or closed city streets. THE MARKET Determining a favorable location is very significant to the success of the market. It should be located in a visible, well traveled, and easily accessible location. Near public transportation is a plus as is an ample parking lot. Is there room for expansion? Will this location be available longterm, as people don't like to be searching for the market at a new location. Before finalizing the location, investigate local zoning regulations. Public facilities (bath- rooms, telephones, etc.) and utilities should be looked into at this time.These are a plus but not essential to operate a market. Shade is an additional benefit. Stall size should be determined to make sure the location is large enough to accommodate all the vendors. A general guideline for minimum width to be considered is the width of car with side doors open. Check for the competition (Grocery stores supermarkets- Do they carry local produce? if so, how much volume do they sell?) in the area. Keep the communication open with them. Get input and opinions from your community service agencies (public works, health, police and fire departments). These services may be utilized in the future. Determine day and time according to what is best for the farmer and customer. Some things to keep in mind are your location: Is it on the way home from work?, Is it on the way to or from the lake? Would over the lunch hours time be good because of location being close to businesses? Start with one or two days, you can always increase but it is not good to subtract days as it confuses the customer. The convenience to of your customers should be a primary consideration. Determining a name and logo can be very beneficial for something the customer can identify you with. Form as a business. The farmers' markets that have started with some type of structure tend to be more successful and are more stable. Even if a board of directors are elected it is good to solicit a market manager (smaller markets may have volunteer — larger markets may have paid manager). This person would collect fees, organize markets events, and handle concerns that may arrive during market days. Have written duties of board members, managers, etc. Develop simple \enforceable bylaws. It is also helpful with these bylaws to have a general set of rules for the market to follow. (See Appendix I, Sample Bylaws.) FUNDING MECHANISM Some type of funding mechanism is valuable to the market. Make a budget of what you think you will need to be a successful market. With this information then develop the revenue to support it. Membership\grower fees are a beginning source. Look for sponsors. INSURANCE ISSUES Address liability insurance issues. Insurance can sometimes be added to individual farmers policy for liability at the market or the market organization can purchase it as a group. Inquiry regarding necessary licenses or rules or codes of area is a must before opening. Other issue to address weight and measures specifications, animal product regulations, labeling Weights and Measurers is where you would contact regarding if you will be weighing items. The scales need to be calibrated. MN Department of Revenue, Sales Tax is where you can obtain information on items that you need to charge sales tax on. PROMOTION OF THEMARKET Signs \banners should be noticeable. requirements, sales tax reporting, vehicle Big, easy to read is recommended. permits, processed food handlers license. • Bright colors • Pictures of produce State food laws can be addressed through the MN Dept. of Agriculture, Dairy and Food Inspection Division. (See Appendix II, Procedures of Operation and Appendix III, Food Sampling Guidelines.) If your market receives grant money from any source you will need to obtain a state and federal ID number. You can receive a state ID number by calling the Dept. of Revenue at (651) 282 -5225 to request one. This can be done over the phone in less than 5 minutes. A federal ID number application can be obtained by calling the Internal Revenue Service, Dept. of the Treasury or writing to Internal Revenue Service Center, ATTN: Entity Control, Stop 57A, 2306 E Bannister Rd, Kansas City, MO 64131. MN Department of Public Service, • Use logos to establish connection (as in MN Grown logo or your own market logo) • Not overwhelmed with information (See Appendix IV, Critiquing Signs) Make sure you know where they are allowed to be placed always ask first!!I Or if there are rules as to size. The market area should be an appealing, clean and happy place to shop. Display produce attractively. You do not need to have elaborate equipment, but it should be clean, sturdy, raised off the floor and protected from the rain and sun. Be positive, helpful and courteous when dealing with the customer. SMILE - it is important to your customers!! Plan events to attract buyers: kids day, a certain produce day or coordinate with town event. APPENDIX L SAMPLE BY-LAWS BY-LAWS (Enter Your Farmers'Market Name) ARTICLE 1. NAME The name of the association shall be (Enter Your Farmers'Market Name). ARTICLE II. ELECTION PROCEDURES (Or some method of selection of officers.) One vote per grower, family, or partnership. Officers will be elected by majority vote. Officers will be elected for (put in number) year term. If a vacancy on the Board of Directors appears the remaining board members shall fill the vacancy by appointment until the next annual meeting at which time membership shall elect someone to complete the remainder of the term. ARTICLE III. BOARD OF DIRECTORSIOFFICERS (Not necessary to have a Board but some type of delegated group to make decisions) The board of directors shall consist of (number of members) members, including (suggestions: Chair, Vice - Chair, Secretary I Treasurer and for separately. Directors shall serve (number ofyear(s) year terms. (When initial terms determine which members will start out for 1 year, 2 year and 3 years so that all the members terms do not expire at the same time. ARTICLE IV. ROLESAND DUTIES OF BOARD OF DIRECTORSIOFFICERS (These duties need to be done for market operation. Below are suggestions on titles and roles.) The Board of Directors \Officers shall set the policies of the organization. This must include deciding the rules, location, hours of operation, dues and \or fee structure and membership requirements and enforcement procedures. Chair -shall preside at all meeting, oversee the management, organization and execution of the business of the Market. Vice-chair-shall perform the duties of the Presidents absence. Secretaryl Treasurervshall record the minutes of all proceeding of the market. He \she shall perform all duties incident to the office of Treasurer and present a complete statement of the financial affairs of the organization to the annual meeting. ARTICLEV. MEETINGS The regular Annual Meeting shall be held at such time and place as determined by the Board of Directors\Officers. Notice of annual meetings shall be published to membership at least 30 days prior to date of annual meeting and shall include the report of the nominating committee. The Farmers Market shall meet at least annually. ARTICLE VI. AMENDMENT PROCESS (Or another established amendment process.) These bylaws may be amended by 2/3 votes of members present at Markets Meeting. APPENDIX I V.- CRITIQUING SIGNS KEYAREAS OF CONCERN • Is the presentation clear and concise? • Is the presentation reflecting your image? • Is there consistency in style, copy and visuals? • Are signs visible from desiered locations? • Are signs motivating customers to react? TIPS FOR POINT OF PURCHASE SIGNS • Be specific. • What will it save? • Pricing easy to understand? • Sizzle, story, romance. • Facts, not fiction. • Explain what's not obvious. • Help customers buy the best product. • Help customers comparison shop. • Logical needs. • Don't say the obvious. • Sign friendly. LETTERING Good lettering is essential on a sign. The lettering is the means through which the viewer receives the information which the sign is communicating. The four main communictaion factors include: Visiability. This is the quality of a letter or number which enables an observer to distinguish it from it's surroundings. Readability. This is the quality which enables the observer to correctly perceive the information content of letters or numbers grouped together in words, sentences, or other meaningful forms. Noticeability. This refers to the quality of a sign which encourages people to look at it. Legibility. This refers to the characteristics of letters or numbers which make it possible to differentiate them from one from the other. A well- designed sign should score high on all four communication critera. Since words are the most impor- tant elements of sign communication, lettering becomes a critical design factor. Many signs utilize plain block lettering. This lettering tends to be the easist to read. However, sign users some- times forget that lettering can do much more than simply communicate a straight forward message. Lettering can also do much to enhance the image of the business which the sign presents. Potential customers take many cues from subtle factors which go into the design of a sign. The lettering may suggest that a business is elegant and expensive, or it may suggest discount prices and effciency. SOME FOOD FOR THOUGHT ON... WHICH FONT? 2001 NAFDMA 2001 NAFDMA 2001 NAFDMA 2001 NAFDMA 2001 NAMMA 2001 NAFDMA 2001 ,QZ(ffD W( 1001 dC�l"oVc/V(,� 2001 NAFDMA Zoo i NAFDMA TIPS FOR PROMOTING YOUR OVERALL MARKET WITH SIGNAGE When you do something right, tell everybody. Happj Holidays from mith's Store As a token of our apprieciation to you, we are underwriting the performance of THE NUTCRACKER )n Saturday, Dec. 15 at City Hall Centel Promote every service you offer. M GIFT PACKAGES sh jamdO area to $50.00 n extra $5.00 Use customer signs for feedback. i°I HEARD CUSTOMERS ASK ABOUT..." Please tell us what you heard... on these cards. Thanks for your help! Sign upcoming events and activities. I CLAM& Expert demonstrations Saturday, Sept. 15th Whenever you make a change to the customer, sign it. PROGRESS ZONE Mill, rmIxsa&V to mate a better store for you. Sorry for the temporary sceorvmrmce. Whenever you make a change to the customer, sign it. WE WILL CLOSE ON CHRISTMAS EVE AT 4 P.M. SHOP 9:00 `til 9:00 every day until then! Keep your "permanent" signs looking good. CONSIDER EFFECTIVE USE OF COLOR Listed below are the best color combinations used in lettering of outdoor advertising displays ranked in order of legibility of letters viewed from a distance. 1. Black on Yellow 2. Black on White 3.Yellow on Black 4. White on Blue 5.Yellow on Blue 6. Green on White 7. Blue on Yellow 8. White on Green 9. White on Brown 10. Brown on Yellow 11. Brown on White 12.Yellow on Brown 13. Red on White 14.Yellow on Brown 15. Red on Yellow 16. White on Red $e .-Claus and Claus, 1974. SIGN VISIBILITY CHART For 10" Black Mock Lettering on White Background K r\I ♦�.1NI. IRaW.Y ti I NI.1 1 T e a.- I.,. •n. •YI N♦• IJ4 u 11 ron I lerpn I IlIn'.I lNNV WG Al W MILLS PLR kJOUR 444 ro•a pa wcu"j. • f ' \V. I.Ii Y -.r .. ._. ♦�-,.. ICJ...- �A,.,.�- 1- �..I- e��k...V.4 -.., -4 wall I♦ a 11 IY 1 • ♦ ♦ • •I e e n I.I, �♦ Nnu •Y Ira. V IrY� VIYM �f.�. r.Nllr. (�•4 u� 1 II \i r.1 I. u� 1 YYdY WIa wlbMla.4l eYR aNJIJR IRR Mn P�N':nmdl' Mud III.. i�..� THE PSYCHOLOGICAL CONNOTATIONS OF COLOR In selecting colors for a sign which will be appropriate to business, it is important to consider the psychological connotations of different colors as well as the factors affecting visibility and legibility. Although some attributes have come to be associated with certain colors, these are not hard and fast rules. A sign designer should be guided by their own sense of what is appropriate. Red. Exciting, active color. Used to suggest boldness, quickness, effciency. Its warmth is appetite- inspiring. Yellow. Another color frequently used by restaurants to create a welcoming atmosphere.A warm color, suggests light and activity, especially in redder shades and tints. Green. Living things, and there for freshness, youth and purity are often associated with green. Green is the predominate color in nature and there- fore must be used carefully in rural settings so it does not fade into the surroundings. Powerful in suggesting naturalness, vitality and peacefulness. Blue. It's coolness tends to connote dignity, serenity, wisdom, and quiet. May be used to suggest a leisurely pace and atmosphere of cultivation and calm. Often used by banks and large corporations. Purple. Purple come to be associated with royalty, pomp and luxuriousness. Visibility factor is low making it unsuit- able for freeway signs, but is oftem used for personal service businesses such as beauty salons. Brown. Brown is the color of the earth and tends to connote naturalness and strength. Businesses which want to indicate thier strength and mainstream value system often use brown and wood hues in their signs. Also used in ranching and farming interests. Brown is basically nuetral due to its association with earth and wood, it is not a color to catch your eye and suggest action. White. In western society white has been the color of innocence. On a sign it can be used to suggest cleanliness and purity. Black. Black can be used effectively in signage to create an impression of low -keyed crispness and sedateness. Sophistication also is suggested, if large areas are used. In assessing all of these colors, the point needs to be made that fairly subtle shifts in tint and tone can create large differences in how colors are perceived. While red is appropriate when used in fairly limited area, when used over too broad of an area it can give the impression of being overpowering. Similarly, pale yellow can suggest daintiness, whereas deeper yellow becomes a very sensuous and powerful color. APPENDIX V.• Further Resources INTERNET www.mfma.org www.minnesotagrown.com www.ams.usda.gov /directmarketing www.ams.usda.gov /tmd /wam /wam.htm www.ams.usda.gov /farmersmarkets