HomeMy WebLinkAboutEDA MIN 12-07-15
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE MEETING OF
DECEMBER 7, 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, Gerry
Herringer, Marlaine Szurek, and Bobby Williams.
Staff Present: Walt Fehst, Joseph Hogeboom, and Shelley Hanson.
PLEDGE OF ALLEGIANCE-
RECITED
CONSENT ITEMS
1.Approve the Minutes from October 12, 2015
.
2.Approve the Financial Report and Payment of Bills for September and October 2015 on
Resolution 2015-25.
Questions by Members:
Nawrocki noted that personnel expenses are over budget. Hogeboom said that salaries are split
between funds 201 and 204 and that transfers are made between the two funds. He said the
figures indicated on these statements are only for fund 204 (The EDA fund). Once the transfers
are made, personnel expenses will be within budgeted amounts. He said next year the salaries
will be charged differently to more accurately reflect the time spent in each fund by personnel in
the department. Hogeboom told Nawrocki he would bring more detailed information on
personnel expenses for both funds to the next meeting.
.
Motion by Schmitt, seconded by Williams, to waive the reading of Resolution 2015-25 there
being an ample amount of copies available to the public. All ayes. MOTION PASSED.
Motion by Schmitt, seconded by Williams, to approve the consent agenda as presented. All
ayes. MOTION PASSED.
EDA RESOLUTION 2015-25
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
(EDA) APPROVING THE FINANCIAL STATEMENTS FOR SEPTEMBER & OCTOBER 2015 AND
PAYMENT OF BILLS FOR THE MONTHS OF SEPTEMBER & OCTOBER 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
December 7, 2015
WHEREAS,
the financial statement for the months of September & October 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 7th day of December, 2015
MOTION BY:
SECONDED BY:
AYES: All ayes
BUSINESS ITEM
1.Single family Home Lot Sales Program – Lot Sale Authorization
Hogeboom explained that in September, the Economic Development Authority (EDA) created
the Single Family Home Lot Sales Program. Tollberg Homes has proposed to purchase each
of the existing lots in the program for $22,500 per lot. The lots are listed as follows:
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 PID 25-30-24-33-0023
4618 Polk Street NE PID 25-30-24-33-0028
EDA Minutes
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December 7, 2015
Tollberg Homes has included a proposal that describes the company’s portfolio and plans for
the abovementioned lots. Staff has reached out to other communities in which Tollberg has
built homes, and has received very positive feedback about the quality of Tollberg Homes’
product, as well as the company’s professionalism.
Listing prices for the abovementioned lots were established at the Estimated Market Value for
the individual properties, ranging from $40,200 to $50,600. Hogeboom explained that he had
contacted about 20 builders and received feedback from a number of them that the lots
currently available in the program, which are located in the Heritage Heights neighborhood,
are generally of lower value than other properties in the City. (This will hopefully change
when new housing stock is introduced into the neighborhood.) Hogeboom said he did get a
verbal offer from another builder of $7,500 per lot, but he told that builder that the EDA
would not consider that low of an offer. Staff feels that the offer from Tollberg Homes, which
exceeds a local real estate agent’s estimated values of the properties, is acceptable and should
be considered by the Economic Development Authority.
Staff recommends that the Economic Development Authority call a public hearing on
Monday, January 4, 2016 to approve the conveyance of certain lots to Tollberg Homes.
Questions/comments from members:
Jerry Tollefson, from Tollberg Homes was present to answer questions. He told members that
his company has built homes in Minot, ND and recently they have been building in Anoka,
Coon Rapids, and Crystal. He said his homes are a quality product and he is not willing to
cheapen the construction as the reputation of his company is at stake. He explained that they
did a lot of research and established a price point not to exceed $200,000 for this area.
Therefore, after taking into consideration the cost to construct the homes, they determined the
purchase price of the lots could not be more than the $22,500 that has been offered. Tollefson
said he is confident that he can build and sell the 6 houses during the next year to improve the
neighborhoods. He passed out comparable sales figures he had gathered for commission
members to review.
Nawrocki asked what the EMV were on the lots. Hogeboom told him they ranged between
$40,200 to $50,600. Nawrocki then asked what the realtors thought the lots were worth.
Hogeboom said Remax estimated that the lots would sell for between $7,500 - $15,000.
Hogeboom reminded members that the scattered site lots sold for $7,500 each and the Pierce
Street lot went for $15,000. He said the price being offered tonight by Tollberg Homes is
much higher than those sales.
EDA Minutes
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December 7, 2015
Nawrocki wanted to know what the City paid for the lots and what the demo costs were.
Hogeboom said the acquisition costs and demo costs were paid for by CDBG Grant funds.
The only cost to the City thus far has been for the clean-up of the sites and general
maintenance such as mowing. Murzyn asked what the costs were for sewer & water work
done for those lots. Hogeboom said he would gather this information and have it for the
members for the January Public Hearing.
Szurek said we may sit on these lots a while if we hold firm to a higher price. She felt it is
important to get them sold and built on in order to improve the neighborhood appearance and
get them back on the tax rolls.
Fehst stated that this is three times the amount we got for the scattered site lots.
Schmitt asked if Tollefson builds the houses on spec and then sells them, or if he waits till he
has buyers. Tollefson stated he would purchase all the lots and then he plans on building two
houses at a time. He lists them once they are sheetrocked prior to final finishing so that
buyers can upgrade their options if they chose to.
Nawrocki asked Hogeboom if neighbors are notified of the Public Hearing. Hogeboom stated
that generally for an EDA Public Hearing it is published in the paper and it is posted on the
agenda notices in various places. He said in this case he would also notify the builders that
had previously been contacted, but that neighbors in the surrounding area are not generally
notified.
Motion by Williams, seconded by Herringer, to hold a public hearing of the EDA on January 4,
2016 to approve the conveyance of certain lots to Tollberg Homes. All ayes. MOTION
PASSED.
ADMINISTRATIVE REPORT
A.January Goalsetting-
Hogeboom told members that the last goal setting session was held two years ago. Some of
the goals have been completed, some are in progress, and others haven’t started yet. He will
bring an update to the members at the January meeting. Hogeboom also informed the
members that the 2016 CDBG application process starts in January and he will be attending a
meeting regarding the criteria that is required to be part of the application.
B.Development Project Update-
Hogeboom gave members an update of the businesses opening at 5200 & 5220 Central
Avenue. He also told them he hopes to bring information to them early next year regarding
the Rainbow Mall site.
EDA Minutes
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December 7, 2015
Hogeboom said the Final Plat for the Huset Park Sr Housing project will go before the City
Council in January. They are planning on submitting the building permit documents once that is
approved and then start construction in late winter.
He told members that the new owners of the NE Business Center are working hard on getting a
commercial tenant for the upper floors of the business center. They are confident they will be
able to get a tenant who needs that much space. NE Bank will be moving out of the building
once their new location in New Brighton is finished.
The auto moratorium will be discussed at the work session following this meeting. Venture Pass
th
has a proposal for the 47 & Central Avenue site that would include a Jiffy Lube, so the Council
needs to be aware of this plan prior to making a final decision about changes to our Ordinance
for future auto related businesses in the city.
It was noted that the next meeting will be Monday, January 4th at 6:30 in Conference Room 1.
The meeting was adjourned at 7:07 pm.
Respectfully submitted,
Shelley Hanson
Secretary