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HomeMy WebLinkAboutEDA MIN 09-08-15 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF SEPTEMBER 8, 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 6:50 pm). Staff Present: Walt Fehst, Joseph Hogeboom, Loren Wickham, and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED 1.CONSENT ITEMS 1.Approve the Minutes from August 3, 2015 . 2.Approve the Financial Report and Payment of Bills for July 2015 on Resolution 2015-17. Questions by Members: There were no questions. Motion by Nawrocki, seconded by Schmitt, to waive the reading of Resolution 2015-17 there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Nawrocki, seconded by Schmitt, to approve the consent agenda as presented. All ayes. MOTION PASSED. EDA RESOLUTION 2015-17 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENTS FOR JULY 2015 AND PAYMENT OF BILLS FOR THE MONTH OF JULY 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 July 2015 has been reviewed by the EDA Commission; and EDA Minutes Page 2 September 8, 2015 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 8th day of September, 2015 MOTION BY: Nawrocki SECONDED BY: Schmitt AYES: All ayes BUSINESS ITEMS 1.Authorize Sale of 4631 Pierce Street NE-Resolution 2015-18 Wickham reminded members that the EDA offered the property at 4631 Pierce St NE to Home Detail, Inc for a price of $20,000 at its last meeting. The offer was accepted and a $2,000 escrow deposit was made for closing costs and the purchase and redevelopment agreement was signed. The Resolution provided to members must be approved to finalize the sale of the lot to Home Detail, Inc. Staff recommends adoption of Resolution 2015-18 approving the Sale of Land and Purchase and Redevelopment Agreement between the Columbia Heights EDA and the Buyer. A copy of the proposed plans for the house to be constructed was provided to the members for their review. EDA Minutes Page 3 September 8, 2015 Questions from Members: There were no questions from the members. Motion by Szurek, seconded by Schmitt, to waive the reading of Resolution 2015-18, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Szurek, seconded by Schmitt, to adopt Resolution 2015-18, Approving the Sale of Land and Purchase and Redevelopment Agreement Between the Columbia Heights Economic Development Authority and Buyer. Nawrocki went on record that he opposes this price as it is less than half of the County’s Estimated Market Value and he feels it is much too low. Vote: All ayes. MOTION PASSED. 2. Approve Proposed Business Terms for the Proposed Dominium Huset Park Apartment Proposal. Earlier this year, representatives from Dominium approached the Economic Development Authority (EDA) regarding Dominium’s interest in acquiring the property at the northeast corner of University th and 37 Avenues and constructing independent senior (55+) apartments. The EDA was amenable to this proposal, and directed staff to work with Dominium to develop a detailed plan. During the summer, Dominium officials held an open house for the Huset Park neighborhoods, where they discussed the plans for the apartment and addressed resident concerns. Based on resident feedback, Dominium revised its plans to bring the proposed apartment building closer to Huset Parkway, and move the surface parking lot behind the building, facing University Avenue. Residents also voiced concern about the future of the parcel located at the Jefferson Street/Huset Parkway roundabout. While Dominium is acquiring that piece of property along with the development site, it has no plans to develop the roundabout property at this time, nor will development requirements be changed for the roundabout property at this time. As the first official step in the development approval process, the EDA is asked to review and approve the attached proposed Business Terms for the project. These terms were negotiated between the developer, staff, the EDA attorney and the City’s bond consultant (Dominium is paying for all professional attorney and financial services associated with the review of this project). Highlights of Business Terms include the following:  The developer will construct and fund a decorative fence along University Avenue, adjacent to the development site.  The developer will construct and fund a 10-foot bituminous trail along University Avenue, adjacent to the development site. EDA Minutes Page 4 September 8, 2015 th  The developer will construct and fund a 6-foot wide sidewalk along 37 Avenue, adjacent to the development site.  The developer will construct and fund a Columbia Heights municipal welcome monument sign th on the corner of University and 37 Avenues (facing northbound University Avenue traffic).  The developer will construct and fund a decorative water feature on the site.  The developer will continue to fund consultant and attorney costs associated with the development and review of this project.  The apartment building will consist of between 190-200 units, and will be senior (55+) housing.  Construction on the site will commence by June 1, 2016, and will be substantially completed by December 31, 2017.  The developer will pay Sewer and Water Access Charges, estimated at $472,150 and $497,000 respectively.  The developer will pay a Park Dedication Fee to the City, estimated to be $217,942 to $232,942 (depending on the number of units developed).  The EDA and the developer will negotiate the refunding of Tax Increment Revenue Bonds to achieve debt service savings. Following the approval of the proposed Business Terms, Dominium intends to seek Site Plan and Plat approval for this project in October from the Planning and Zoning Commission and the City Council, and will seek to amend the Development Agreement for Huset Park with the Economic Development Authority. All of those items will be addressed as public hearings. Site specific elements of the proposal, such as building façade treatments, landscaping, traffic circulation, etc. will be addressed at that time. If approval is granted, Dominium intends to close on the sale of the property in November and begin site work shortly thereafter. They expect the project to take approximately 2 years to complete. Staff recommends approval of the following motion to approve the proposed Business Terms for the Huset Park/Dominium Senior Housing Development to be located at the northwest corner of State th Trunk Highway 47 (University Avenue NE.) and 37 Avenue NE. Questions from Members: Nawrocki questioned how much parking they will provide because he didn’t feel there was enough based on what was shown on the proposed map of the project. Ron Mehl, from Dominium said they plan for 1.25 parking spaces per unit. 75% of those spaces will be underground and the remainder will be provided around the building which would be used by residents if needed or guest parking. th Nawrocki then asked if there would be a sidewalk along 37 Avenue. Mehl told members that they th would have a sidewalk along 37 Avenue and it will connect to the pathway along University Avenue so residents will have safe walkways. EDA Minutes Page 5 September 8, 2015 Nawrocki thought this piece was supposed to be used as a commercial/industrial site. He was concerned that it would eliminate job opportunities and feels we need more business development. Hogeboom said the Development Plan will have to be amended as the original Plan showed a combination of residences and Mixed Use. He does feel this project will be a good fit for the area however, and that it will attract other re-development especially along the west side of University in the future. Nawrocki then asked if this is in a TIF District and what impact it will have on the District. Hogeboom stated that Ehlers is looking into that at present. It will extend the District to 2032, but will eventually generate more taxes than what was there prior to the redevelopment. Hogeboom told members that he will provide more detailed information at the next meeting regarding the tax impact. He also told members that Dominium is willing to pay for the Attorney/Consultant expenses to sort this out, but they want approval of the concept before these expenses are generated. Schmitt asked if the SAC fees are similar to what they paid on other projects. Mehl said they are standard fees set by the Met Council, so yes, they are comparable. She then told them to contact the Mississippi Watershed as soon as possible and work with them regarding the storm water management plan. Dominium said they always work closely with them on these types of projects. Schmitt said she was pleased with the plan and glad they held a meeting with the residents of Huset Park townhomes. She questioned the legal description provided in the agenda packet. She wanted staff to have it reviewed to ensure its accuracy. Hogeboom said he will have the attorney verify its accuracy and explained that it will be re-platted so the legal description will be modified. Murzyn thought it would be a good project for the area. Szurek said she had attended the open house at St Anthony and was very pleased with the building and thought it would be a great addition to our city. Herringer also went to the open house and was impressed with the quality of the project. He noted that Dominium has a good reputation and thanked them for considering our community for their next project. Nawrocki stated that he thinks the project looks nice also but worries about 10-15 years down the line. He said it depends on how the building is kept up. He also inquired how long it would keep the 55+ status. Mehl responded that they have a land use agreement recorded against the property that would require the 55+ status for at least 15 years. Hogeboom said the Development Agreement with the City will require it be designated as a 55+ building, and it would stay that way unless the EDA amends it at a later time. The EDA would have to allow the change. Mehl then told members that they will own and manage the building after it is complete. They hold on to properties for the long haul – they do not build and sell to others, or let others manage the buildings for them. Williams asked if this project would be financed with tax credits. Mehl said they will be used to partially finance the project. Williams then asked why they didn’t build higher than 3 stories. Mehl said the parking ratio is hard to meet with the added units. Williams said he is excited to have this type of project being added to our city and thinks it is perfect for the site. EDA Minutes Page 6 September 8, 2015 Fehst feels the proposed building is a quality project and will provide our residents with options to stay in our City. Peterson is also excited about Dominium’s proposal and feels they have a good track record of building, maintaining and managing their projects. Motion by Schmitt, seconded by Szurek, to approve the proposed Business Terms for the Huset Park/Dominium Senior Housing Development, as presented. All ayes, MOTION PASSED. 3. Approve Residential Lot Sale Program and Call for a Public Hearing Regarding Land Conveyance Related to the Program. Staff has inventoried existing City/EDA owned lots and is proposing a Residential Lot Sales Program with a list of lots to sell to licensed builders for the construction of single family owner occupied homes. Highlights of the program:  All houses must have at least three bedrooms, two bathrooms, and an attached or detached two-car garage  A purchase and redevelopment agreement must be signed with a deed restriction requiring owner occupancy for 10 years.  Lot prices were recommended in April by our Scattered Sites Realtor.  Lots are sold on first come first served basis- first offer meeting price and program requirements will be forwarded to the EDA for consideration.  Lots will only be sold to state licensed builders.  A builder can purchase an exclusive $1,000 non-refundable option for 6 months to try and market the lot on the MLS system. Other options for pricing that we considered were  Listing lots at their Anoka County property tax value  Releasing an RFP and forwarding the highest offers that met the program requirements to the EDA for consideration. Staff will market the program and lots for sale on the City’s website, press releases to state and local builders and realtors associations and direct contact with a list of builders that have inquired about our lots since the beginning of the year. Staff recommends adoption of resolution 2015-19 Approving a residential Lot Sales Program and calling a public hearing regarding land conveyance related to the program. Hogeboom explained that the properties would become available after the Public Hearing in October. EDA Minutes Page 7 September 8, 2015 Questions from members: th Members noted that one of the lots located at 4147 7 Street is only 30 feet wide, therefore it would not be large enough to construct a home on and meet the criteria being approved. Hogeboom agreed it would require variances in order to build on the property. Members felt this property should be removed from the list and that staff should reach out to the neighbors to see if they would like to purchase the lot or divide it so that neighbors on both sides could purchase it to combine with their properties. Nawrocki felt the prices listed are too low. Hogeboom said the prices included in the packets were those established by ReMax last spring, and were considered a starting point for discussion. He said the EDA could adjourn to an executive session at the October meeting in order to set the price point. Hogeboom wanted to set the parameters of the program at this meeting and call for the Public Hearing. He said final pricing can be done at the October meeting based on feedback from this meeting. Herringer said another option would be to use the prices shown as a minimum bid and then take the top bid. Jerry Tollefson from Tollberg Homes was present at the meeting. He told members he had purchased lots in various cities throughout the metro area. He has built 4 homes in Anoka, 3 in Crystal, and 1 in Coon Rapids. He has paid anywhere from $30,000-$50,000 for the lots. He’s looked at the lots we have on the list and is interested in 5 of them. Tollefson showed the members 7 different designs of homes he builds. He cautioned the EDA to price the lots so that a house can be constructed for a total sale price of just under $200,000. He thinks homes priced higher than that would be difficult to sell in Columbia Heights. Schmitt questioned the clause of a 6 month option to purchase for a $1,000 deposit. She wanted to know who would be responsible for maintaining the property during that 6 month timeframe. Hogeboom told her the City would continue to maintain them. She then went on to say she thought a requirement for 3 trees was too many. Hogeboom said they could reduce it to 2 if that is the EDA’s desire. Motion by Williams, seconded by Szurek, to waive the reading of Resolution 2015-19, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Szurek, to adopt Resolution 2015-19, Resolution Approving a Residential Lot Sales Program and Calling A Public Hearing Regarding Land Conveyance Related to the Program with the following changes: 1.To reduce the number of trees to 2. 2.To not include a price at this time 3.To allow access from the street or the alley th 4.To remove 4147 7 Street from the list. All ayes. MOTION PASSED. EDA Minutes Page 8 September 8, 2015 Administrative Report Hogeboom told members the reason he recommended an Executive Session to establish lot prices at the October meeting would be to give staff time to poll other cities to gather information on what they sold their lots for, what the condition of the lots were, size of the lots, etc. Hogeboom reminded members of upcoming events: th 1. Library groundbreaking September 14 at 5:30 with numerous photo ops with the various groups that have been involved in the process. th 2. Parkview Villa closing has been pushed back another week to Sept. 24 so the groundbreaking th for their renovations is now set for Sept. 29. th 3. The Chamber of Commerce’s Movie Night Event will be held Sept. 24 at the Heights Theater. Development continues at the old Blockbuster building (5220 Central Ave). Chipolte and Noodles & Co. are both shooting for a November opening. He said Venture Pass had more tenants interested than they had space for, so they are looking for property nearby to possibly accommodate those additional businesses. The meeting was adjourned at 7:50 pm. Respectfully submitted, Shelley Hanson Secretary