Loading...
HomeMy WebLinkAboutEDA MIN 10-12-15 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF OCTOBER 12, 2015 IN CONFERENCE ROOM 1 The meeting was called to order at 6:15 pm by Chair Peterson. Members Present: Bruce Nawrocki, Donna Schmitt, Gary Peterson, John Murzyn, Gerry Herringer, and Bobby Williams. Members Absent: Marlaine Szurek Staff Present: Walt Fehst, Joseph Hogeboom, and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED 1.CONSENT ITEMS 1.Approve the Minutes from September 8 and September 21, 2015 . 2.Approve the Financial Report and Payment of Bills for August 2015 on Resolution 2015-21. Questions by Members: th Nawrocki questioned a couple of items from the September 8 minutes. He wanted more information about the developer refinancing the Tax Increment Revenue Bonds and what the tax impact would be for the City if this is done. Hogeboom told him if the two contracts are approved tonight, it will allow Dominium to move forward with the purchase. He said Dominium may refinance the TIF bonds to get a better interest rate which would generate more TIF funds for the project. Dominium would pay for any Attorney/Consultant fees to sort this out. Hogeboom said this would be discussed further later in the agenda. Motion by Williams, seconded by Murzyn, to waive the reading of Resolution 2015-21 there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Murzyn, to approve the consent agenda as presented. All ayes. MOTION PASSED. EDA RESOLUTION 2015-21 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENTS FOR AUGUST 2015 AND PAYMENT OF BILLS FOR THE MONTH OF AUGUST 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 October 12, 2015 WHEREAS, the financial statement for the month of August 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 12th day of October, 2015 MOTION BY: Williams SECONDED BY: Murzyn AYES: All ayes Chair Peterson then chose to address the Huset Park Development Contracts prior to the Public Hearing for The Lot Sales Program. BUSINESS ITEM 1.Second Amended and Restated Development Contract for Private Development at Huset Park- Resolution 2015-23 and Resolution 2015-24. Hogeboom reminded members that the original Development Agreement for the Huset Park area was approved in 2004. Due to the downturn in the economy and housing construction, the project was not completed and the remaining parcels went back to BNC Bank. Earlier this year, representatives from Dominium approached the Economic Development Authority (EDA) regarding Dominium’s interest th in acquiring the property at the northeast corner of University 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. EDA Minutes Page 3 October 12, 2015 Later this summer, Dominium officials held an open house for the Huset Park neighborhoods, where they discussed the plans for the apartment and addressed resident concerns. In September, the EDA approved a set of Business Terms for the project. As a requirement of the project, the EDA must authorize the execution of the “Second Amended and Restated Contract for Private Development” between the City and the Developer. This document must then be approved by the City Council. A separate document has been drafted to address the “remnant parcel” which is located at the southeast corner of the Jefferson St./Huset Parkway intersection. The remnant parcel is not part of this proposal; however, Dominium is acquiring the remnant parcel as part of the sale. The contract outlines specific requirements that the Developer will have to adhere to as part of the project. EDA Attorney Martha Ingram was present at the EDA meeting to address any questions or concerns that Commissioners had regarding the proposed contract. Hogeboom stated that if approved, Dominium intends to close on the sale of the property in November and begin site work shortly thereafter. Staff recommends approval of the Second Amended and Restated Development Contract for Private Development by and between the Columbia Heights Economic Development Authority, the City of Columbia Heights and Columbia Heights Leased Housing Associates I, LLLP for both the Redeveloper Parcels and the Remnant Parcel. Copies of the documents were given to the members for their review. Martha Ingram told members that the existing Development Agreement was separated to address the two remaining parcels individually, and then was fine tuned to make it pertinent to this project. Since there are no plans for the remnant piece at this time, the plan for 80+ units of cooperative senior living remains the same, but does allow an extension of the timeframe whereby development of that piece would need to begin by 2020. Realistically, that particular plan may not happen, but the Development Agreement for that piece would have to be amended and approved at a later time if an interested party comes forward with a different plan. Questions by members: Nawrocki asked what use was approved in the original Development Agreement. Hogeboom told him there were actually two parts to the large parcel Dominium is looking to now develop. The northern section would have been for additional townhouses and the southern part was approved for mixed use. Ingram told members that the new contracts do not give any new TIF assistance and that this contract will eventually generate more TIF funds. She also stated that it would not extend the TIF District timeline. EDA Minutes Page 4 October 12, 2015 Herringer asked Dominium if they create a separate LLP for each project. Ron Mehl from Dominium told him they do create a separate entity for each development project for liability and borrowing reasons. All the LLP’s are still under the Dominium umbrella. Schmitt asked about the blank dates in the documents (Section 4.3) provided to the members in the agenda. Ingram told her those dates have since been agreed to. Construction on the small round- about parcel must commence by 2020 and be completed by 2022 unless modified at a later time. A resident of the townhomes lives near the subject property being developed. She is concerned about traffic congestion, dirt containment, soils pollution, and safety issues during construction. Hogeboom addressed some of her concerns. He explained the location of the building and access points have been modified from the original proposal. There will now be one access point off Huset Pkwy to the parking lot and parking garage, and there will be sidewalks and trails connecting the site to other locations for safe pedestrian traffic. Hogeboom encouraged her to stay for the City Council meeting so she could see the Site Plan being considered for this development. Ron Mehl also told those present that environmental studies have been done and there is not really a concern regarding pollution on this site since a lot of remediation work has already been done. He said it is their policy to have security and soils containment fencing present around the site during construction and that they usually sweep the streets on a weekly basis. Schmitt asked if park dedication would be paid on the remnant site at this time. Hogeboom said the park dedication fees would be paid at the time that site is developed. He told members that a separate planning contract for the new apartment building site will come to them later that will address the costs for storm water, parking lot, park dedication, sidewalks, etc. Motion by Williams, seconded by Herringer, to waive the reading of Resolution 2015-23, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Herringer, to adopt Resolution 2015-23, Resolution Approving a Second Amended and Restated Contract for Private Redevelopment between the Columbia Heights Economic Development Authority, the City of Columbia Heights, and Columbia Heights Leased Housing Associates I, LLLP for the “Redeveloper Parcels” at Huset Park Senior Living. All ayes. MOTION PASSED. Motion by Williams, seconded by Herringer, to waive the reading of Resolution 2015-24, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Herringer, to adopt Resolution 2015-23, Resolution Approving a Second Amended and Restated Contract for Private Redevelopment between the Columbia Heights Economic Development Authority, the City of Columbia Heights, and Columbia Heights Leased Housing Associates I, LLLP for the “Remnant Parcel” at Huset Park Senior Living. All ayes. MOTION PASSED. EDA Minutes Page 5 October 12, 2015 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-23 RESOLUTION APPROVING A SECOND AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF COLUMBIA HEIGHTS AND COLUMBIA HEIGHTS LEASED HOUSING ASSOCIATES I, LLLP 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 Columbia Heights Economic Development Authority (“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"), and is currently administering the Downtown CBD Redevelopment Project ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. The Authority, the City of Columbia Heights (the “City”), and Huset Park Development Corporation (the “Original Developer”) previously entered into a Contract for Private Redevelopment dated as of October 25, 2004, amended and restated in its entirety by an Amended and Restated Contract for Private Redevelopment dated as of August 1, 2007, as amended by a First Amendment thereto dated as of June 16, 2008, a Second Amendment thereto dated as of February 9, 2009, a Third Amendment thereto dated as of September 28, 2009 (subsequent to which BNC National Bank (“BNC”) succeeded in interest to the Original Developer), a Fourth Amendment thereto dated as of November 21, 2011, a Fifth Amendment thereto dated as of April 2013, and a Sixth Amendment thereto dated as of June 2, 2014 (together, the “Original Contract”) regarding redevelopment of certain property within the Redevelopment Project in the area known as Huset Park (the “Redevelopment Property”). 1.03. A portion of the Redevelopment Property (the “Redeveloper Parcels”) has not been developed as contemplated in the Original Contract, and BNC proposes to convey the Redeveloper Parcels to Columbia Heights Leased Housing Associates I, LLLP (the “Redeveloper") and to assign the Original Contract to the Redeveloper as to such Redeveloper Parcels. 1.04. The Authority, the City and the Redeveloper have proposed to enter into a Second Amended and Restated Contract for Private Redevelopment (the “Contract”), setting forth the terms and conditions of redevelopment of the Redeveloper Parcels. 1.05. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority’s obligations thereunder are in the best interest of the City and its residents. Section 2. Authority Approval; Further Proceedings. 2.01. The Authority approves the assignment of the Original Contract to the Redeveloper as to the Redeveloper Parcels. EDA Minutes Page 6 October 12, 2015 2.02. The Contract as presented to the Board 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. 2.03. 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, and to carry out, on behalf of the Authority its obligations thereunder. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority th this 12 day of October, 2015. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-24 RESOLUTION APPROVING A SECOND AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF COLUMBIA HEIGHTS AND COLUMBIA HEIGHTS LEASED HOUSING ASSOCIATES II, LLLP 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 Columbia Heights Economic Development Authority (“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"), and is currently administering the Downtown CBD Redevelopment Project ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. The Authority, the City of Columbia Heights (the “City”), and Huset Park Development Corporation (the “Original Developer”) previously entered into a Contract for Private Redevelopment dated as of October 25, 2004, amended and restated in its entirety by an Amended and Restated Contract for Private Redevelopment dated as of August 1, 2007, as amended by a First Amendment thereto dated as of June 16, 2008, a Second Amendment thereto dated as of February 9, 2009, a Third Amendment thereto dated as of September 28, 2009 (subsequent to which BNC National Bank (“BNC”) succeeded in interest to the Original Developer), a Fourth Amendment thereto dated as of November 21, 2011, a Fifth Amendment thereto dated as of April 2013, and a Sixth Amendment thereto dated as of June 2, 2014 (together, the “Original Contract”) regarding redevelopment of certain property within the Redevelopment Project in the area known as Huset Park (the “Redevelopment Property”). 1.03. A portion of the Redevelopment Property (the “Remnant Parcel”) has not been developed as contemplated in the Original Contract, and BNC proposes to convey the Remnant Parcel to Columbia Heights Leased Housing Associates II, LLLP (the “Redeveloper") and to assign the Original Contract to the Redeveloper as to such Remnant Parcel. EDA Minutes Page 7 October 12, 2015 1.04. The Authority, the City and the Redeveloper have proposed to enter into a Second Amended and Restated Contract for Private Redevelopment (the “Contract”), setting forth the terms and conditions of redevelopment of the Remnant Parcel. 1.05. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority’s obligations thereunder are in the best interest of the City and its residents. Section 2. Authority Approval; Further Proceedings. 2.01. The Authority approves the assignment of the Original Contract to the Redeveloper as to the Remnant Parcel. 2.02. The Contract as presented to the Board 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. 2.03. 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, and to carry out, on behalf of the Authority its obligations thereunder. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority th this 12 day of October, 2015. 1.Authorize Single Family Home Lot Sales Program – Resolution 2015-22 In September, the Economic Development Authority (EDA) created the Single Family Home Lot Sales Program. Before lots in the program can be advertised for sale, a public hearing must be held to authorize the sale prices of the lots. Tonight’s hearing will address the following lots: 4606 Polk Street NE PID 25-30-24-33-0030 4636 Polk Street NE PID 25-30-24-33-0025 4641 Tyler Street NE PID 25-30-24-33-0038 4600 Polk Street NE PID 25-30-24-33-0031 4648 Polk Street NE #1 PID 25-30-24-33-0023 4618 Polk Street NE PID 25-30-24-33-0028 Hogeboom told members that the 30 foot lot was removed from the list and staff has contacted the neighboring properties to see if they would be interested in purchasing that lot. He reminded members that minimum criteria have already been established for the construction of homes for these lots. Hogeboom said staff reviewed programs run by other cities and recommends listing the lots for the EMV set by Anoka County. He explained that a full price offer or higher would be accepted. If more than one offer is received the EDA could meet with the builders and decide which one would be awarded the sale. EDA Minutes Page 8 October 12, 2015 Staff recommends adoption of Resolution 2015-22, authorizing the sale of the abovementioned lots included in the Single Family Home Lot Sales Program. Questions/comments from members: rd Schmitt said she understands listing them at the EMV, but noted that the lot on 43 and Reservoir Blvd sold for a similar price and is still vacant. Hogeboom said that lot has a pre-determined builder which reduces the number of interested parties. He said he thinks the lots will sell since a buyer could use whatever builder they want as long as they meet the minimum requirements, or a builder could build a home on speculation. Schmitt asked how we would handle an offer that is under the asking price. Hogeboom said it could be brought to the EDA for consideration. Peterson asked if there is a timeframe we are working with. Hogeboom said it is open ended at this time and that staff would have discretion to deny an offer or to bring it back to the EDA. He told the members if they wished to set more parameters, they can do so. Peterson asked that any offers that come in be brought to the EDA at the next available meeting for consideration, unless a full price offer is received, whereby staff can accept it and pull it off the list. Nawrocki agreed with using the EMV as the listing price. Public Hearing Opened. No one wished to speak on this matter. Public Hearing Closed. Motion by Williams, seconded by Murzyn, to waive the reading of Resolution 2015-22, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Murzyn, to adopt Resolution 2015-22, a Resolution Approving Plan for Conveyance of Certain Lots Owned by the Economic Development Authority. All ayes. MOTION PASSED. EDA Minutes Page 9 October 12, 2015 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-022 RESOLUTION APPROVING PLAN FOR CONVEYANCE OF CERTAIN LOTS OWNED BY THE ECONONOMIC DEVELOPMENT AUTHORITY 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"), and is currently administering the Downtown CBD Redevelopment Project ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. Within the Redevelopment Project, the Authority has acquired parcels suitable for the construction of single-family homes, which parcels are described in Exhibit A hereto (the “Subject Parcels”). 1.03. The Authority intends to convey the Subject Parcels to contractors that will construct homes for sale to owner-occupants, and to that end has created its Single Family Home Lot Sales Program, and approved preliminary guidelines for this program (the “Guidelines”) on September 8, 2015. 1.04. On October 6, 2015, the City Planning Commission found by resolution that the conveyance of the Subject Parcels is consistent with the City’s comprehensive plan and furthers the housing goals of the plan. On this date, the Board held a duly noticed public hearing regarding the plan for sale of the Subject Parcels. 1.05. The Board has determined that sale of the Subject Parcels as described in this resolution, pursuant to the Guidelines, is in the best interest of the City and its residents. Section 2. Sale of Subject Parcels Approved; Further Proceedings. 2.01. The Board approves the plan to sell the Subject Parcels in accordance with the Guidelines. 2.02. The Board hereby ratifies approval of the Guidelines and the insertion of sale prices for each of the Subject Parcels. 2.03. Authority staff and consultants are authorized and directed to negotiate sales of the Subject Parcels with qualified contractors, subject to the condition that before the EDA is obligated to sell any Subject Parcel, the Board shall approve a purchase and redevelopment agreement with the buyer of that parcel (as described in the Guidelines). EDA Minutes Page 10 October 12, 2015 Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 12th day of October, 2015. President ATTEST: Secretary Administrative Report nd It was noted that the next meeting will be Monday, November 2 at 6:30 in Conference Room 1. The meeting was adjourned at 7:03 pm. Respectfully submitted, Shelley Hanson Secretary