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HomeMy WebLinkAboutEDA MIN 06-01-15 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF JUNE 1, 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 Herringer, and Bobby Williams (arrived at 7 pm). Staff Present: Walt Fehst, Joseph Hogeboom, Loren Wickham, and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED 1.CONSENT ITEMS 1.Approve the Minutes from May 4, 2015 . 2.Approve the Financial Report and Payment of Bills for April and May 2015 on Resolution 2015-07. Consideration of Sale of Scattered Site Property-3842 Tyler Street NE 3. RE/MAX has drafted a Purchase and Redevelopment Agreement with Timbercraft Enterprises, Inc. for the sale of a scattered site lot at 3842 Tyler St NE. They are proposing to construct the 2 story model previously approved in the program. The proposed purchase price is $7,500 consistent with previous sales. A closing is proposed for June 12, 2015. Staff recommends approval of the sale of the property located at 3842 Tyler Street NE to Timbercraft Enterprises, Inc. Consideration of Sale of Scattered Site Property-3846 Tyler St NE 4. RE/MAX has also drafted a Purchase and Redevelopment Agreement with Timbercraft Enterprises, Inc. for the sale of a scattered site lot at 3846 Tyler St NE. They are proposing to construct the 2 story model previously approved in the program. The proposed purchase price is $7,500 consistent with previous sales. A closing is proposed for June 12, 2015. Staff recommends approval of the sale of the property located at 3846 Tyler Street NE to Timbercraft Enterprises, Inc. Questions by Members: There were no questions. EDA Minutes Page 2 June 1, 2015 Motion by Schmitt, seconded by Szurek, to waive the reading of Resolution 2015-07, 2015-08, 2015-09 there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Schmitt, seconded by Szurek, to approve the consent agenda as presented. All ayes. MOTION PASSED. EDA RESOLUTION 2015-07 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENTS FOR APRIL AND MAY 2015 AND PAYMENT OF BILLS FOR THE MONTHS OF APRIL AND MAY 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 April and May 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 1st day of June, 2015 MOTION BY: Schmitt SECONDED BY: Szurek AYES: All ayes EDA Minutes Page 3 June 1, 2015 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-08 RESOLUTION APPROVING A PURCHASE AND REDEVELOPMENT AGREEMENT (INCLUDING THE SALE OF LAND) BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND TIMBERCRAFT ENTERPRISES, INC. BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections 469.090 to 469.108 ("EDA Act"). 1.02. The Authority and Timbercraft Enterprises, Inc. (the “Buyer") have proposed to enter into a Purchase and Redevelopment Agreement (the “Contract”), setting forth the terms and conditions of sale and redevelopment of certain property owned by the Authority, located at 3842 Tyler Street NE and described as WALTONS 1ST SUB OF RES HILLS, CITY OF COLUMBIA HEIGHTS LOT 7, BLK 4, WALTONS 1ST SUB OF RESERVOIR HILLS, Anoka County, Minnesota (the “Property”). 1.03. Pursuant to the Contract, the Buyer will acquire the Property and will construct a single family home, subject further to the City’s zoning and building codes and policies. 1.04. The Authority has on this date conducted a duly noticed public hearing regarding the sale of the Property to the Buyer, at which all interested persons were given an opportunity to be heard. 1.05. The Authority finds and determines that conveyance of the Property to the Buyer has no relationship to the City’s comprehensive plan, in that no amendment or modification of the comprehensive plan is required for the conveyance or redevelopment of the Property. The activities of the parties under the Contract implement housing goals of the City’s Comprehensive Plan: “Promote and preserve the single-family housing stock as the community’s strongest asset.” and “Provide a variety of life-cycle housing opportunities within the community.” 1.06. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are in the public interest and will further the objectives of its general plan of economic development and redevelopment, because it will further the above-stated housing goals. Section 2. Authority Approval; Further Proceedings. 2.01. The Contract as presented to the Board, including the sale of the Property described therein, is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, including without limitation the deed, and to carry out, on behalf of the Authority, its obligations thereunder. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. EDA Minutes Page 4 June 1, 2015 st Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 1 day of June, 2015. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-09 RESOLUTION APPROVING A PURCHASE AND REDEVELOPMENT AGREEMENT (INCLUDING THE SALE OF LAND) BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND TIMBERCRAFT ENTERPRISES, INC. BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections 469.090 to 469.108 ("EDA Act"). 1.02. The Authority and Timbercraft Enterprises, Inc. (the “Buyer") have proposed to enter into a Purchase and Redevelopment Agreement (the “Contract”), setting forth the terms and conditions of sale and redevelopment of certain property owned by the Authority, located at 3846 Tyler Street NE and described as WALTONS 1ST SUB OF RES HILLS, CITY OF COLUMBIA HEIGHTS LOT 6, BLK 4, WALTONS 1ST SUB OF RESERVOIR HILLS, Anoka County, Minnesota (the “Property”). 1.03. Pursuant to the Contract, the Buyer will acquire the Property and will construct a single family home, subject further to the City’s zoning and building codes and policies. 1.04. The Authority has on this date conducted a duly noticed public hearing regarding the sale of the Property to the Buyer, at which all interested persons were given an opportunity to be heard. 1.05. The Authority finds and determines that conveyance of the Property to the Buyer has no relationship to the City’s comprehensive plan, in that no amendment or modification of the comprehensive plan is required for the conveyance or redevelopment of the Property. The activities of the parties under the Contract implement housing goals of the City’s Comprehensive Plan: “Promote and preserve the single-family housing stock as the community’s strongest asset.” and “Provide a variety of life-cycle housing opportunities within the community.” 1.06. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are in the public interest and will further the objectives of its general plan of economic development and redevelopment, because it will further the above-stated housing goals. Section 2. Authority Approval; Further Proceedings. 2.01. The Contract as presented to the Board, including the sale of the Property described therein, is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. EDA Minutes Page 5 June 1, 2015 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, including without limitation the deed, and to carry out, on behalf of the Authority, its obligations thereunder. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. st Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 1 day of June, 2015. NEW BUSINESS 1.Consideration of Sale of 4631 Pierce Street NE Jeff Mandicks from My Home Detail, Inc. has approached the City about purchasing an EDA owned lot at 4631 Pierce St NE. Recently, staff completed an inventory of lots that the City and EDA own for possible sale or inclusion in the Scattered Sites Housing Program. ReMAX has evaluated this lot and estimates the sale price at $25,000 based on comparable sales in the City. Anoka County Property tax records indicate the 2015 estimated market value at $50,600. Discussion at the last meeting brought a consensus from the members that the selling price should be in the range of $20,000-$25,000. Staff recommends holding firm on the sale price of $25,000. This is still a 50% reduction from the estimated market value. This lot is not included in the Scattered Sites Housing Program but staff recommends the sale of this lot should include a purchase and redevelopment agreement. This agreement includes a reverter clause and a 10 year deed restriction requirement of owner occupancy. In order to sell this property the EDA must hold a public hearing first. Staff recommends the EDA authorize staff to publish a public hearing for the sale of 4631 Pierce St NE and to enter into negotiations with My Home Detail, Inc. for the sale of property contingent on EDA approval. Questions/comments: Nawrocki asked whether the lot was already considered sold since there is a “sold sign” on the property. Wickham said it is not sold, he was not aware of any “sold” signs on the property, and that a Public Hearing needs to be held before the property can be sold. EDA Minutes Page 6 June 1, 2015 Jeff Mandicks from My Home Detail admitted that he had placed a sign on the property in anticipation of the new construction. Mandicks went on to say that he felt $25,000 was too high for this lot since the scattered site lots were sold for $7,500. He thought a price of $15,000 was more appropriate and his buyer would be willing to go that high. He said a price of $25,000 could be a deal breaker. Hogeboom explained that the scattered site lots were purchased with different funds and are part of a TIF District which affects the amount of tax the City will receive from them, therefore they were priced differently. He also stated that the scattered site lot on Reservoir was sold for $35,000 which is more than the price the EDA has set for this Pierce Street lot. Schmitt said the price of $20,000-$25,000 was decided at the last meeting and the price of $15,000 that Mr. Mandicks suggests was not approved. Nawrocki agreed. He also said some of the members felt the price of $7,500 for the scattered site lots was too low, but was agreed to as it allowed for extra amenities to be included in the construction of the home itself. Mandicks stated he has three other parties who may be interested in some of the other lots owned by the City or EDA, so he would like to have prices established on them so he and his potential buyers have an idea of the total cost to construct new homes on these parcels. Staff said they would work on that over the next month and bring back recommendations to the EDA for approval. Mandicks also asked who would be the responsible party for the retaining wall on this site. Wickham said he thought it was part of this property site, but will check with the Public Works Director to verify that it is not on City property. Motion by Herringer, seconded by Nawrocki, to waive the reading of Resolution 2015-10, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Herringer, seconded by Nawrocki, to adopt Resolution 2015-10, calling for a public hearing to consider selling property at 4631 Pierce St NE for $25,000 and to include the reverter clause and a 10 year deed restriction requirement. Ayes-Szurek, Murzyn, Herringer, Nawrocki, Peterson Nays-Schmitt MOTION PASSED. EDA Minutes Page 7 June 1, 2015 Columbia Heights Economic Development Authority RESOLUTION 2015-10 RESOLUTION CALLING FOR A PUBLIC HEARING TO CONSIDER SELLING PROPERTY AT 4631 PIERCE ST NE AND TO ENTER INTO NEGOTIATIONS FOR THE PURCHASE AND REDEVELOPMENT OF SAID PROPERTY WHEREAS , the City Council authorized purchase of the blighted property on August 25, 2008 with the intent to demolish and resale, and WHEREAS , Pursuant to State Law a Public Hearing will be published in the City’s authorized newspaper, and WHEREAS , The Authority intends to convey the Subject Parcel to a contractor that will enter into a redevelopment contract to construct an owner occupied home NOW, THEREFORE BE IT RESOLVED , that the Columbia Heights Economic Development Authority (EDA) staff are authorized to publish a public hearing to consider selling property at 4631 Pierce St NE. and to enter into negotiations for the purchase and redevelopment of said property. I certify that the above resolution was adopted by the Columbia Heights Economic Development Authority. st PASSED THIS 1 Day of June, 2015. OFFERED BY: Herringer SECOND BY: Nawrocki ROLL CALL: Ayes-Szurek, Murzyn, Herringer, Nawrocki, Peterson Nays-Schmitt 2.Consider the Purchase of 4641 Polk St NE Anoka County Community Action Program (ACCAP) owns the duplex at 4641 Polk Street and has approached the city to purchase it. The City previously purchased properties at 4641 & 4647 Tyler St NE from ACCAP. ACCAP approached the city before going to the open market because they support our redevelopment efforts in this area. Anoka County Property Tax records indicate a 2015 Estimated Market Value of $151,500. Staff offered them $75,000 after the last meeting and they accepted with conditions. Wickham said they want to partner with the City for the redevelopment of this site. He told members that the conditions are not clear but suggests they want to possibly be the builder, and that they want owner assistance ($25,000) from the City to help a low income purchaser qualify. ACCAP is also seeking proof that it will be torn down and replaced with affordable housing. To date the City/EDA has purchased 7 parcels in the Sheffield neighborhood and demolished all the buildings associated with these parcels. The majority of the parcels have been located on Polk Street. There has been a significant decrease in crime and calls for service as well as code enforcement issues on Polk Street. The Police Department supports the purchase of this property. EDA Minutes Page 8 June 1, 2015 Staff recommends entering into negotiations for the purchase of a duplex at 4641 Polk Street, by approving the Resolution authorizing a purchase price up to $75,000 but wants direction regarding the conditions set by ACCAP. Questions/comments by Members: Herringer didn’t think we should lock ourselves into these conditions. Wickham agreed and said we should do as we have done in the past and that is to purchase the property with the intent of having a single family home on this lot. The City can either demolish the structure and sell to a builder for a new single family home, or possibly partner with a builder who could completely renovate it and convert to a single family home. Peterson said we should counter again to purchase it for $75,000 with no conditions. At the very least, Condition #3 should be crossed out and to change the “demolish clause” to “redevelop” as a single family home. Motion by Herringer, seconded by Szurek, to waive the reading of Resolution 2015-11, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Herringer, seconded by Szurek, to adopt Resolution 2015-11, approving the acquisition of 4641 Polk St NE for $75,000 without any additional conditions and to authorize the EDA President and the EDA Executive Director to execute an agreement for the same. All ayes. MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION 2015-11 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE AGREEMENT FOR CERTAIN REAL PROPERTY LOCATED AT 4641 POLK STREET NORTHEAST IN THE CITY AND ASSIGNMENT THEREOF TO THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority (the “Authority”) administers the Downtown CBD Redevelopment Project (the “Project”) within the City, which was established under Minnesota Statutes, Sections 469.001 to 469.047 (the “HRA Act”). 1.02. The Authority has undertaken a program to acquire homes in the Project in order to address foreclosure problems and remediate and prevent the emergence of blight. 1.03 City staff is negotiating a Real Estate Purchase Agreement with the Anoka County Community Action Program ACCAP (the “Seller”) dated as of May 15, 2015 including all related addenda and disclosures thereto (collectively, the “Purchase Agreement”), for real property located at 4641 Polk Street Northeast and legally described as follows: SHEFFIELDS SECOND SUB., CITY OF COLUMBIA HEIGHTS EDA Minutes Page 9 June 1, 2015 TH PT OF LOT 23 LYING N OF S 20 FT OF SD LOT 23 & LOT 24 BLK 1 SHEFFIELDS 2ND SUB (the “Property”), which Purchase Agreement is contingent upon approval by the Economic Development Authority. 1.04. The Purchase Agreement will be prepared once a price is negotiated and on file with the City Manager, and/or the Executive Director of the EDA. Section 2. Approval and Assignment. 2.01. The Purchase for the Property is hereby approved, and the execution of the Purchase Agreement by the EDA is hereby ratified. Pursuant to the Purchase Agreement, the EDA will purchase this Property for up to $75,000 from its EDA TIF fund 376 as part of the scattered site program. City staff and officials are authorized and directed to take all such other actions to complete the purchase of the Property, including without limitation execution of all documents and agreements related to such transaction. 2.02. Contingent upon approval of the Authority, the City hereby assigns its interests in the Purchase Agreement to the Authority. City staff and officials are authorized and directed to take all such other actions to complete the assignment of the City’s interests in the Purchase Agreement to the Authority, including without limitation execution of any documents and agreements necessary to effectuate such assignment. st Passed this 1 day of June Offered by: Herringer Second by: Szurek Roll Call: All ayes ATTEST: ____________________________________ President Gary L. Peterson __________________________________ Shelley Hanson, Secretary 3.Redevelopment Updates/Other Business Northeast Business Center- Hogeboom told members that Swervo Redevelopment Company has closed on the office building and they have submitted plans for the interior demolition of the current office space. They plan on renovating the building for future office use as they secure tenants. Huset Park- Hogeboom stated that Dominium is still negotiating with BNC for the purchase of the remaining piece for construction of a senior independent apartment building. The process is slow going, but it is still anticipated to happen. EDA Minutes Page 10 June 1, 2015 Grand Central Properties- Hogeboom told members that the builder has been in contact with the HOA of Grand Central Lofts Condo building to set up a meeting with them to discuss amenities they would like to see included in the proposed plan that could be utilized by both buildings. Nawrocki asked about whether there has been any interest in the commercial piece. Hogeboom told members that he isn’t aware of anyone being interested in the site to date. Former Blockbuster Site- Hogeboom stated that construction is underway for the new building and renovation of the existing building. He said they are expected to open by October. Herringer said there may be room on this site for a Gateway to Columbia Heights sign and that the developer should be contacted regarding this possibility if the City so chooses. Nawrocki asked if there was any update on the Rainbow Mall site. Hogeboom stated the temporary liquidation business is now closed, and as far as he knows there has been no further interest in the site by any other businesses. Nawrocki said he thought Ace Hardware was taking over the parking lot with their outdoor storage and garden center. He felt they were taking up a lot of the parking in front of the remaining businesses. Hogeboom stated that Ace has a CUP for the Garden Center and the use of the parking lot is an issue between Brixmoor and the tenants. The meeting was adjourned at 7:24 pm. Respectfully submitted, Shelley Hanson Secretary