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HomeMy WebLinkAboutEDA AGN 03-07-16CH COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AGENDA March 7, 2016 6:00 pm I. Call to Order 2. Roll Call 3. Pledge of Allegiance City Hall Conference Room 1 59040`h Avenue NE Columbia Heights, MN 55421 CONSENT AGENDA 4. Approve minutes of January 4, 2016 S. Approve Financial Report and Payment of Bills for December, 2015 — Resolution 2016- 04 6. Approve Financial Report and Payment of Bills for January, 2016 —Resolution 2016 -05 Motion: Move to approve Consent Agenda as presented. BUSINESS ITEMS 7. Purchase and Redevelopment Agreements with Tollberg Homes, LLC. — Resolution 2016 -06 Motion: Move to waive reading of Resolution 2016 -05, there being ample copies available to the public. Motion: Move to adopt Resolution 2016 -05, Resolution approving Purchase and Redevelopment Agreements with Tollberg Homes, LLC for the acquisition of certain residential lots. OTHER BUSINESS 8. Blue Cross Blue Shield Active Place Demonstration Grant 9. Single Family Home Lot Sales Program — ACCAP 10. Adjourn The next regular EDA meeting will be April 4, 2016 at City Hall ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF JANUARY 4, 2016 IN CONFERENCE ROOM 1 The meeting was called to order at 6:30 pm by Walt Fehst, Executive Director. 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 ELECTION OF OFFICERS: Motion by Williams, seconded by Schmitt to nominate Gary Peterson as President. All ayes. Motion Passed. Motion by Nawrocki, seconded by Herringer to nominate Williams as Vice President. All ayes. Motion Passed. Motion by Williams, seconded by Murzyn to nominate Nawrocki as Secretary/Treasurer. All ayes. Motion Passed. Therefore, the 2016 list of Officers is as follows: President- Gary Peterson Vice President- Bobby Williams Secretary/Treasurer- Bruce Nawrocki CONSENT ITEMS 1. Approve the Minutes from December 7, 2015. 2. Approve the Financial Report and Payment of Bills for November 2015 on Resolution 2016 -01. Ouestions by Members: Herringer asked what the check for $8,300 to Lighthouse was for. Hogeboom stated it was the TIF payment to the Lighthouse -Asst. Living facility. Hogeboom told members he would provide a full report for funds 201 and 204 to the Board next month once the December numbers are included which will provide the comparison of the budgeted expenses versus the actual. After looking at the totals at the end of November, he told members that the two funds should come in at, or under, budgeted amounts. Error! Unknown document property name. EDA Minutes Page 2 January 4, 2016 Motion by Murzyn, seconded by Szurek to waive the reading of Resolution 2016 -01 there being an ample amount of copies available to the public. All ayes. MOTIONPASSED. Motion by Murzyn, seconded by Szurek, to approve the consent agenda as presented. All ayes. MOTIONPASSED. RESOLUTION NO. 2016-01 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for Month of November, 2015 and the Payment of the Bills for the Month of December, 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 December, 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 Error! Unknown document property name. EDA Minutes Page 3 January 4, 2016 BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this 4t" day of January, 2016. Motion by: Murzyn Seconded by: Szurek 1. Single family Home Lot Sales Program — Amendment- Resolution 2016 -02 The EDA attorney reviewed the Single Family Home Lot Sales Program, and has made some minor suggested changes. The changes reflect protecting the EDA from incurring any buyer - associated sale costs, as well as establishing a minimum lot price for each lot in the program. An underlined/over - scored copy of the Program guidelines was included in the agenda packets. Hogeboom reviewed the changes with members. Staff recommends approval of Resolution 2016 -02, authorizing certain changes to the Single Family Home Lot Sales Program. Ouestions from members: Herringer questioned an item in the guidelines that stated a builder could not hold more than 25% of the lots available on option. Hogeboom told members this clause was added more for the future if additional lots become available. He went on to explain that this builder is purchasing the lots outright, and is not proposing to tie them up by "buying on option ". Schmitt pointed out that information on frequently asked questions and the actual guidelines don't match up regarding the number of trees required. Members had previously decided to reduce the number of trees to one. Hogeboom stated he would make the change so the documents are accurate and match. Motion by Szurek, seconded by Williams, to waive the reading of Resolution 2016 -02, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Szurek, seconded by Herringer, to adopt Resolution 2016 -02, Resolution Approving certain changes to the Single Family Home Lot Sales Program. All ayes. MOTIONPASSED. Error: Unknown document property name. EDA Minutes Page 4 January 4, 2016 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016-02 RESOLUTION APPROVING REVISED GUIDELINES FOR CONVEYANCE OF CERTAIN LOTS OWNED BY THE ECONONOMIC DEVELOPMENT AUTHORITY BE rr 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 may in the future identify additional parcels suitable for such construction. To that end, the Authority created its Single Family Home Lot Sales Program and approved preliminary guidelines for this program (the "Guidelines ") on September 8, 2015. 1.04. The Authority has determined that certain revisions to the Guidelines are needed, and has caused revisions to the Guidelines to be prepared in the form presented to the Board. Section 2. Revised Guidelines Approved, Further Proceedin¢s. 2.01. The Board approves the Guidelines as modified. 2.02. 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. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 4th day of January, 2016. President ATTEST: Secretary Error! Unknown document properly name. EDA Minutes Page 5 January 4, 2016 EXHBIT A Subject Parcels ADDRESS LEGAL DESCRIPTION PID 4606 Polk Street NE Lot 13, except the North 1/2, the North 30 feet of Lot 25- 30 -24 -33 -0030 14, Block 2, Sheffield's Second Subdivision, Anoka County, Minnesota Torrens] 4636 Polk Street NE Lot 5, except the North 35 feet thereof, all of Lot 6, 25- 30 -24 -33 -0025 and the North' /2 of Lot 7, in Block 2, Sheffield's Second Subdivision, Anoka County, Minnesota [Torrens 4641 Tyler Street NE Lot 25 and the South 20 feet of Lot 26, Block 2, 25- 30 -24 -33 -0038 Sheffield's Second Subdivision, Anoka County, Minnesota [Torrens 4600 Polk Street NE Lot 14, except the North 30 feet thereof, and Lot 15, 25- 30 -24 -33 -0031 Block 2, Sheffield's Second Subdivision, Anoka County, Minnesota [Torrens] 4648 Polk Street NE South '' /x of Lot 2, and all of Lot 3, Block 2, 25- 30 -24 -33 -0023 Sheffield's Second Subdivision, Anoka County, Minnesota Torrens 4618 Polk Street NE Lot 11, and the North 10 feet of Lot 12, Block 2, 25- 30 -24 -33 -0028 Sheffield's Second Subdivision, Anoka County, Minnesota [Torrens PUBLIC HEARING: Purchase and Redevelopment Agreements with Tollberg Homes LLC — Resolution 2016 -03 Hogeboom explained that on December 7, 2015, the EDA called a public hearing to approve a Purchase and Redevelopment Agreement with Tollberg Homes for the purchase and acquisition of six EDA -owned residential properties. Tollberg Homes proposes to construct six single family homes on the properties, which would meet the EDA's minimum construction standards. Under this agreement, the properties will be sold to Tollberg Homes for $22,500 per lot. Approval of Resolution 2016 -03 will cover all six individual purchase agreements. In December, the EDA requested information pertaining to acquisition costs associated with these properties by the EDA. The total acquisition cost for the six properties in question was $946,400, which was expended via unobligated K -Mart Tax Increment Financing funds. As part of the "Sheffield Neighborhood Action Plan ", an additional $170,000 was granted to the City through the Community Development Block Grant program in 2010. Of that allotment, $168,442.50 was ultimately used to fund demolition costs, environmental and site remediation, and sewer and water disconnects. Error! Unknown document property name. EDA Minutes Page 6 January 4, 2016 Staff recommends approval of Resolution 2016 -03, authorizing approval of the Purchase and Redevelopment Agreements with Tollberg Homes, LLC. for the acquisition of the following properties: 4606 Polk Street NE 4636 Polk Street NE 4641 Tyler Street NE 4600 Polk Street NE 4648 Polk Street NE 4618 Polk Street NE Questions from members: There were no additional questions from members. Public Hearing Opened. No one was present to speak on this matter Public Hearine Closed Motion by Williams, seconded by Szurel; to waive the reading of Resolution 2016 -03, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Williams, seconded by Szurek, to adopt Resolution 2016 -03, Resolution Approving Purchase and Redevelopment Agreements with Tollberg Homes, LLC for the acquisition of certain residential lots. All ayes. MOTIONPASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016-03 RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENTS WITH TOLLBERG HOMES, LLC. BE IT RESOLVED BY the Board of Commissioners ('Board ") of the Columbia Heights Economic Development Authority (the "Authority ") as follows: Section 1. Recitals. 1.01. The Authority has previously adopted a program called the Single Family Home Lot Sales Program (the "Program "), and has adopted guidelines in connection with the Program (the "Guidelines "). Error! Unknown document property name. EDA Minutes Page 7 January 4, 2016 1.02. The Authority has received an offer from Tollberg Homes, LLC (the "Buyer ") to purchase certain properties included in the Program (the "Property "), described as attached hereto as Exhibit A, and the parties have negotiated Purchase and Redevelopment Agreements (the "Agreements ") which provide for the conveyance of the Property to the Buyer and the construction by the Buyer of single - family homes on the Property, all pursuant to the Guidelines. 1.03. On October 21, 2015, the Planning Commission of the City reviewed the proposed conveyance of the Property pursuant to the Program and found that such conveyance is consistent with the City's comprehensive plan. 1.04. The Authority has on this date conducted a duly noticed public hearing regarding the conveyance of the Property to the Buyer, at which all interested parties were given an opportunity to be heard. 1.05. The Board has reviewed the Agreements and finds that the execution thereof and performance of the Authority's obligations thereunder, including the conveyance of the Property to the Buyer, are consistent with the Guidelines and in the best interest of the City and its residents. Section 2. Approval and Authorization of Agreements and Conveyance 2.01. The Agreements as presented to the Board and the conveyance of the Property provided for therein are 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 Agreements by such officials shall be conclusive evidence of approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Agreements as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Agreements, and any deeds or other documents necessary to convey the Property to the Buyer, all as described in the Agreements. Section 3. Effective Date. This resolution shall be effective upon approval. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 4th day of January, 2016. President ATTEST: Secretary Error: Unknown document property name. EDA Minutes Page 8 January 4, 2016 EXHIBIT A Property ADDRESS LEGAL DESCRIPTION PID 4606 Polk Street NE Lot 13, except the North 1/2, the North 30 feet of Lot 25- 30 -24 -33 -0030 14, Block 2, Sheffield's Second Subdivision, Anoka County, Minnesota [Torrens] 4636 Polk Street NE Lot 5, except the North 35 feet thereof, all of Lot 6, 25- 30 -24 -33 -0025 and the North %2 of Lot 7, in Block 2, Sheffield's Second Subdivision, Anoka County, Minnesota Torrens] 4641 Tyler Street NE Lot 25 and the South 20 feet of Lot 26, Block 2, 25- 30 -24 -33 -0038 Sheffield's Second Subdivision, Anoka County, Minnesota Torrens] 4600 Polk Street NE Lot 14, except the North 30 feet thereof, and Lot 15, 25- 30 -24 -33 -0031 Block 2, Sheffield's Second Subdivision, Anoka County, Minnesota Torrens 4648 Polk Street NE South %2 of Lot 2, and all of Lot 3, Block 2, 25- 30 -24 -33 -0023 Sheffield's Second Subdivision, Anoka County, Minnesota Torrens] 4618 Polk Street NE Lot 11, and the North 10 feet of Lot 12, Block 2, 25- 30 -24 -33 -0028 Sheffield's Second Subdivision, Anoka County, Minnesota Torrens] OTHER BUSINESS• A. January Goalsettine- Enclosed in the agenda packets was a copy of the "Columbia Heights 2014/2015 Strategic Planning Guide" that was adopted on April 7, 2014. The goals and objectives contained in the Guide were the result of a brainstorming workshop that was held by the EDA earlier in 2014. Hogeboom told members that staff is currently in the selection process of hiring a new liaison to the EDA who will take the place of the former Assistant Community Development Director. This person is expected to begin employment later in January. Once this person is on board, he /she will lead a workshop with the EDA at which we will go over each goal in detail and discuss how it is being achieved, as well as develop further action steps. He suggested scheduling a separate meeting for this in February as he expects it to take approximately 2 hours to have a discussion to cover future development projects, TIF funding, and re- establish goals for the City. Hogeboom asked that members review the documents provided in the agenda packet in preparation for that upcoming discussion. The commission members agreed this would be a good idea. EDA Minutes Page 9 January 4, 2016 Nawrocki asked Hogeboom how he expects to cover expenses of additional personnel in the department when they lost the administration revenue from overseeing Parkview Villa. Hogeboom said he re- structured the positions in the office within the same budget parameters so that staff can focus on development projects (i.e. the Rainbow Site, and the 47h and Central site), obtaining funding for the clean-up and development of the Root property and to continue purchasing properties for the scattered site program. He said the department is also taking over more of the communications oversight in regards to the website, newsletter, and social media. It was noted that the next regular meeting will be Monday, February 1 st at 6:30 in Conference Room 1. 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I Iz ;m W H W J I m J H o Id U x [h 0 :W> 0 0 000 00 00 000 ..... 000000.. iOz m 0 0 000 00 00 000 00000 00000000 0 0 000 00 iMy 00 000 00000 00000000 IHr Hz O d I � I n k I C. � m zC1 a Iz 0 0 000 00 00 000 00000 00000000 I °tT 0 O 00 0 00 0 0 000 00 0 0 O 00 0000 0 . . . . . . . � 00 00000000 :m d 1 H N 000 00 000 0000000 O 1 N Izn �H 1dH a D ( Ha HH 2H d wo z,m ro o D I zro c 0 0 000 00 00 000 00000 00000000 100 net M o O O O o 0 o Oo 0 0 0 00 00 0 00 O O O O° 00 I WI-3 M tij 00 O O O 00 O 000 O O 00 O and u d i n 1bb zn � IOH I w w O O w NN rn rn0 1 IOU N O O O w JJ O 00 lO Olp 00 rn01 000 00000000 1 00 m 01 O . . . . iPOJrnO 00000000 MI m 00 p�j I nO �[Hx] p�j 000000 VIO mJO 00000000 1 MU I I U N N I b O O pp w N� :>w W W W NN m rno J J 2Z n H O O lO Olp 00 O O O rn01 000 JOOrnO OOOOQO00 Az lD O rn o Ln OI➢ 00 morn oo �L.P 000 .PO JO�O • rnm 00000000 1 I n I 1 1 000 11 ,nomJO 00000000 I I I 1 mH r H f l0 tD 1p lD lD lO IO �� 17 Uk' N W O �o oio 0o l0 ID ID �� VOID io io n I H o0 000 ioo a�oo 00000000 'b'J I 1 1 I 1 I I I I I I I 1 I 1 1 1 11 • G N 3 I I I I 11 1 11 Jd7 j 1 1 rov W MIA H ._ ._._ H mm C \rnn \H O o bZ rnn b to ..m �m m Wa H O H Y r c� z � d b H A7 O H o y � r th O 0 x 0 m H z H e� d M I C I H w I m J I n] o Icy o 0 1 z o z I�G o Syr I I w 0 m T i W I I I I —V 1 I I bJ iz I n I C I 'S I � I� I � I � I d I I �zn I rJ H I I H'3 zH I o I TJ 0 by 00 IOm I [h H wof y y Hn I rfy I H,! Z10 3 ro zro loo Om m mm mo I w � I y r H z OH hz I m I ro I n IH r n <,m r .aro �H oOz oz z omn 1 H 2H3 ' -'tom+ t, �K .y o p w $ c H x x Q w 0 0 x H x ro to ?1 H O 0 x ro 4 (D za ort �G . n N N O � G lP F+ a HH x I- 0d 0 c c� x 0 L-J C) W 0 u o� rH in k N 00 c0 00 to H ro� m W x H RESOLUTION NO. 2016-04 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for Month of December, 2015 and the Payment of the Bills for the Month of December, 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 December, 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. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this day of 2016 Offered by Seconded by: Roll Call: Gary L. Peterson, President Attest: Shelley Hanson, Secretary Resolution 2016 -04 m 0 0 v CD 0 �. fmtk 0 rMIL I< 0 rMIL 0 h 0 3 cam' mn su � n 7m W �0 - CD N � 0 0 MML m 0 0 v CD 0 �. fmtk 0 rMIL I< 0 rMIL 0 h 0 3 cam' W m O 1l C� O z m z k X m 2 < m z Z z p p c = m c c O � m M O O O m C c r El v z m m m r r Z Z M m � W r p z m m D m � 3 3 m z U) cn Cl) cn m m m m n n n n O O O O z z z z � W N W m O 1l C� O z m z G 0 r°oH .n m r [tl rr ZN0 Onp 0 a 0 Oro N O FS �ro HH oa a� n x Ko a rn w O a r rnro H r oN ma rnN N n �ro OH k n ro KN ro x H O H na NO raT G m(D a x mro H\� MN F" C fD n mo 0 H Oa H L�J Oa art an m N zz O'x1C trJroHC�V HNOaGaN0 N HC aa O amnxo 0 0. nax• a'N O D m mm• ann 0 p.N �t N N rt C7 2. N • P, o• O. • • rta. 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OOOOO ........ 00 O O O 00 O00 000 OO O O O 00 O O O 000 00 00 O 00 00 000 00000 00 0 000 oO o0 000 ..... ........ 000 00 00 000 00000 00000000 000 00 00 000 00000 00000000 00O O O 00 000 000.0 O 00 00000 111 C O I H 1�1 I m 1 o x W> Icz ro oz w 1 ac 'z Irny H IHr O 0 Iz % 1n ro 1c 4m S z W za I to r ;d L9 � -0 I C O IS 1 I N O Gl zo Mp 1 zn 0 7H a 1 IzH xH o zm ro 0 c 00 1 O O 6] nW x WN m Imo o 4 1Y9 Z zn IoH w 1 I Hly' IzH I o N RV 0 00 00 rn nm m H w d I m I wm 1Y3 Irk yH zz nH rnz 1 n n m H 1n N0 I n 00 I H 1p ^i 00 mr Ow H Ln Ln x a1 m Ila r > I �Nn I C�cn H o I rim H � C �] I Ooy 3 d y�y [tl 1 y�r H o� .. y 1 00[.7 M 13 � O ro d [ m I w I ro I o � 1 H I z I H I (� I d 1 I 1 xl C O I H x1 I m m C> laz ro o Idz n N Ci N x O y H o 13 t, O d I � n ro a 2 1 xl o rt o I d] -• G 0 1 m O I N Yb �G 1zn rnN I (p MP d z cl x N x17 ro om w x7 ro C o 00 G) O 1nw x 9H 0 1 nm 0 1 cn d 4 yy 2 z I dH W I I H� IzH I d N I I[J O w 10ro 0 100 rn o Inm 1 [h H O I [n b7 O I (!1 d I I tdm r� z H Izz w InH o b z o I O o n O 1 .n H I rH In .0 0 0 N O (i OD ko I H x1 h7 � I Cn 1 00 mr • C 1 O.� I N [Tl 1 H I '•b cx •- H •- o - x - H Jm RESOLUTION NO. 2016 -05 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for Month of January, 2016 and the Payment of the Bills for the Month of January, 2016. 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 January, 2016 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. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this day of 12016 Offered by: Seconded by: Roll Call: Gary L. Peterson, President Attest: Shelley Hanson, Secretary Resolution 2016 -05 CH COLUMBIA HEIGHTS AGENDA SECTION BUSINESS ITEMS ITEM NO. 7 MEETING DATE MARCH 7, 2016 CITY OF COLUMBIA HEIGHTS — ECONOMIC DEVELOPMENT AUTHORITY ITEM: Single Family Home Lot Sales Program — Lot Sale Authorization DEPARTMENT: Economic Development Authority CITY MANAGER'S APPROVAL: BY /DATE: Keith M Dahl, February 16, 2016 BY /DATE: Walt Fehst, December 1, 2015 BACKGROUND: September 2015, the Economic Development Authority (EDA) established the Single Family Home Lot Sales Program. January 2016, the EDA approved resolution 2016 -03, authorizing the approval of a purchase and redevelopment agreement with Tollberg Homes for six residential lots. As of February 2016, Tollberg Homes has purchased three of the six residential lots at $22,500 per lot. However, due to unexpected sewer and water improvements to the remaining three residential lots, Tollberg Homes has proposed a $4,000 purchase price reduction per lot. Tollberg Homes is now offering a purchase price of $18,500 per lot for the remaining three residential lots listed as follows: 4636 Polk Street NE PID 25- 30 -24 -33 -0025 4648 Polk Street NE PID 25- 30 -24 -33 -0023 4618 Polk Street NE PID 25- 30 -24 -33 -0028 Tollberg Homes has included a proposal that describes the company's portfolio and plans for the 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 aforementioned lots were established at the Estimated Market Value for the individual properties, ranging from $40,200 to $50,600. However, in speaking with various home builders, staff received feedback that the lots currently available in the program, which are located in the Heritage Heights, are of lower value than other properties throughout the City. Tollberg Homes offer of $18,500 still exceeds the estimated property value given by a local real estate agent. STAFF RECOMMENDATION: Staff recommends approval of Resolution 2016 -06, authorizing approval of the Purchase and Redevelopment Agreements with Tollberg Homes, LLC for the acquisition of the following properties: 4636 Polk Street NE PID 25- 30 -24 -33 -0025 4648 Polk Street NE PID 25- 30 -24 -33 -0023 4618 Polk Street NE PID 25- 30 -24 -33 -0028 City of Columbia Heights - EDA Letter City of Columbia Heights - Council Letter Page 2 RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2016 -06, there being ample copies available to the public. Motion: Move to adopt Resolution 2016 -06, Resolution Approving Purchase and Redevelopment Agreements with Tollberg Homes, LLC for the acquisition of certain residential lots. ATTACHMENTS: 1. Letter of Concern —Tollberg Homes 2. Tollberg Homes Proposal (16 pages) 3. Resolution 2016 -06 TOLLBBRG 1428 5"' Ave I Anoka, MN 55304 p: 763 - 205 -20371 f: 763 - 421 -5616 1 www.toliberghomes.com February 16, 2016 Columbia Heights Community Development 590 40th Avenue NE Columbia Heights, MN 55421 Dear Mr. Hogeboom, As part of our due diligence regarding the Columbia Heights EDA lots, we have discovered concerns with the sewer and water stubs for the property. It was our understanding that sewer and water services were available at the ROW property line when we were negotiating the purchase price of the lots. That is the case with the lots located at 4641 Tyler and 4606 and 4600 Polk. However, the lots located at 4618, 4636, and 4648 Polk appear to require extensive work to bring the services to the lot. This will include having to dig to the main lines to extend the services and repaving of the street. We are more than willing to proceed with the purchase of the first three lots at the agreed upon purchase price of $22,500 per lot. For the three lots that require additional infrastructure, we would like to offer $18,500 to reflect the additional cost we will incur. Thank you for your consideration. Very truly yours, Wade Tollefson President Toliberg Homes LLC Cell: 612- 804 -9988 TQLUE.R October 26, 2015 Community Development Department 590 40th Avenue NE Columbia Heights, MNB 55421 RE: Proposal for Economic Development Administration 5 Lots on Polk St. NE and I lot on Tyler St. NE 4606 Polk St. NE 4636 Polk St. NE 4600 Polk St. NE 4648 Polk St. NE 4618 Polk St. NE 4641 Tyler St. NE Tollberg Homes LLC is an Anoka builder specializing in the construction of homes from $189,000 to $499,000. Tollberg Homes is located at 1428 5th Avenue, Anoka, MN 55303. Tollberg Homes builds approximately 50 homes each year. Tollberg Homes LLC is an award winning builder. Tollberg Homes has not only won the Home Award in North Dakota in 2015, but has recently won a 2015 Reggie Award in Minnesota.. We currently have models and are building in Blaine, Anoka, Crystal, Coon Rapids and Lino Lakes. If you would like to visit our models we certainly can provide addresses and lock box numbers. We have financial strength to purchase these six lots and close on them when ready and to construct on all five lots. A commitment letter can be provided upon request. Tollberg Homes LLC is a specialist in building in inner communities. We would refer you to Mr. Erik Thorvig, Economic Development Manager in Anoka as a reference as Tollberg Homes LLC has just purchased, constructed and sold four houses on lots purchased from the Economic Development Administration of Anoka in 2015. You will see enclosed recent pictures of these houses. We would also like to refer you to the Economic Development Manager in Crystal where Tollberg Homes LLC has in 2015 purchased, built and sold three houses in Crystal; you will also find enclosed recent pictures of these houses. In addition please refer to the Economic Development Manager in Coon Rapids where Tollberg Homes LLC has purchased, built and sold a house in 2015 in Coon Rapids. A recent picture is enclosed. It is our intent to construct on all 6 properties in Columbia Heights as quickly as possible. We have a full time realtor that sells for Tollberg Homes exclusively. We would hope to purchase the land and close as time and weather permits. 120 days is our normal completion time frame to construct a home so we anticipate that we will have the first two houses built and sold within the first six months from purchase. We would then start the next two. Again with the 120 day construction period, we would think that these two properties would be finished by summer of 2016. At that time Tollberg Homes would close, and construct the final two properties. By the late summer of 2016 Tollberg Homes would have purchased, closed and built on all 6 lots. Enclosed you will find Tollberg Homes LLC offer as well as a sample blueprint and a sample of specifications for the houses we intend to build. It is Tollberg's intention to finish the complete upper level and to make compliance with the EDA guidelines will finish one bedroom and one bathroom in the lower level. The reason is that it is imperative for us (or anybody) to be able to compete with the current structure of pricing of other properties in the neighborhood. Please note that this is a mixed use area with lower priced properties and apartment buildings as the neighbors. The potential houses to be built have to stay within reason of the current pricing or they would be unable to be sold. It would be unrealistic for anyone to think that the final purchase price of the new houses would exceed $199,000. In order for Tollberg (or anyone else) to produce properties in that price range these covenants and lot prices described in our offer have to be met. We strongly encourage you to consider this offer. We have a track record with Economic Development Authorities, and can perform. We thank you for the opportunity to offer a proposal on these lots and would request that if you have any questions , please feel free to contact the undersigned. Very truly yours, Wade Tollefson President Tollberg Homes LLC Cell: 612 - 804 -9988 Aa�� TOLLB .RG New Home Spec Sheet By signing below (or by electronic approval on BuilderTrend), Buyer approves and accepts specifications as written. These specifications supersede finish notes on the house plans UNLESS Tollberg Homes has specifically added red line notes to the plan. Any change to these specifications is subject to $150 Change Order fee in addition to the cost of the change. A requested change is not guaranteed until a signed Change Order is on file. Buyer is aware that any item discussed between Buyer and Builder, or representative of the Builder, that has not been detailed on the approved House plans, Spec Sheet, or Change Order will not be included in construction. It is the responsibility of the Buyer to check and confirm that all desired changes have been detailed on the House plans, Spec Sheet, or Change Order. Date: Date: OYes uxSSD u5L750 OEnd Wall OCorner Olnterior I ODog House OFlush hearth ORaised hearth OBlower ORemote ❑Ceramic rile face OStonetomantel OStonetocelline r7Wnndmanrlu 1 HVAC: Gaslines: ODryer ORange OCooktop ®Furnace OFireplace OGarage Heater OWater Heater Venting: ®Dryer OBathfans ORange Hood OMicroAir Exchanger. Oyes ®No Humidifier: OYes SNo I Gas Service: ®Natural Gas OLP Notes [Notes] Water Heater.• 050 Gal Electric 050 Gal Powervent Garage FloorDraim O Yes 0 N i y9Garbage Disposal ®Ice Makerline OSprinklerline OWet Rar DaIaundry Tuh rlP .,m— n 14c.,.....e__b_. —1 Service: Elso Plate Covers: ZlWhite OAlmond Recessed Lights: 4 Lighting: ®Standard Package ®Door Chime ❑Whirlpool Tub ®Central Air OSump Pump OAir Exchanger OHOLWater Heater OWell Oln Floorheat OHumidifier OZbne Controls ®M icrowavecircuit ®Range ORange Hood OCooktop ®Garbage Disposal OIDishwasher ®Refrigerator OWall Oven ®Dryer OCeiling Fan ((s)) 0 Bath Fan (2) ®Phone (2) OCable (2 ) n ti a W� 0 9 a < T J � W J 4 �1 _ 1 NI � ce;rt I A y6 '0 3 N LJ`N q+vr� i npd� d3 om W X33 � 1J� � r Lm low 'I �im ■ ■ ��, 11m. I...... Ju'Id� f 9 a W � W J _A f Imo; �t ew J o dXa �G# _n 0 nx�n �W �r m ILL o- / l g ri {� .a 45-L vWL !� �.f � s| � Le �! // \ { } g 2 �_ ' \ \ C | }y ! e l g ri {� .a 45-L vWL !� �.f � s| � Le �! // \ { } g 2 �_ ' \ r i s h i r s ` y P � .1 Oill f _ -Ji 4. ^•_. �i. 9 f# ray.. = V 4 P ` 7r -GeV 4 arr -w M1•- F--- L u ineG� M1•- F--- L u I m.n --- i 4 4r ,t c} r �t • 1.rN' A_ H (f +i! oo F 3 cr ' 4 .0' 4 - 1 i a �4 i R� 4 C x r llfiiit � h Y i>9r � I ,e COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016-06 RESOLUTION APPROVING REVISED PURCHASE AND REDEVELOPMENT AGREEMENTS WITH TOLLBERG HOMES, LLC. BE rr RESOLVED BY the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority (the "Authority") as follows: Section 1. Recitals. 1.01. The Authority has previously adopted a program called the Single Family Home Lot Sales Program (the "Program "), and has adopted guidelines in connection with the Program (the "Guidelines "). 1.02. The Authority has received an offer from Tollberg Homes, LLC (the "Buyer ") to purchase certain properties included in the Program (the "Property "), described as attached hereto as Exhibit A, and the parties have negotiated Purchase and Redevelopment Agreements (the "Agreements ") which provide for the conveyance of the Property to the Buyer and the construction by the Buyer of single - family homes on the Property, all pursuant to the Guidelines. 1.03. On October 21, 2015, the Planning Commission of the City reviewed the proposed conveyance of the Property pursuant to the Program and found that such conveyance is consistent with the City's comprehensive plan. 1.04. On January 4, 2016, the Authority conducted a duly noticed public hearing regarding the conveyance of the Property to the Buyer, at which all interested parties were given an opportunity to be heard, and approved the Agreements. 1.05. Subsequent to Authority approval of the Agreements, the Buyer requested and the Authority agreed to a reduction in the purchase price of the Property, due to higher- than- anticipated Buyer expenses related to the water and sewer connections of the Property to City water and sewer mains. The parties agreed to amend the Agreements to reflect the reduced purchase price. 1.06. The Board has reviewed the Agreements as so amended (the "Amended Agreements ") and finds that the execution thereof and performance of the Authority's obligations thereunder, including the conveyance of the Property to the Buyer, are consistent with the Guidelines and in the best interest of the City and its residents. Section 2. Approval and Authorization of Amended Agreements and Conveyance 2.01. The Amended Agreements as presented to the Board and the conveyance of the Property provided for therein are 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 473153v2 MNI CL205 -55 Director, provided that execution of the Amended Agreements by such officials shall be conclusive evidence of approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Amended Agreements as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Amended Agreements, and any deeds or other documents necessary to convey the Property to the Buyer, all as described in the Amended Agreements. Section 3. Effective Date. This resolution shall be effective upon approval. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 7th day of March, 2016. President ATTEST: Secretary 473153v2 MNI CU05 -55 EXHIBIT A Property ADDRESS LEGAL DESCRIPTION PID 4636 Polk Street NE Lot 5, except the North 35 feet thereof, all of Lot 6, 25- 30 -24 -33 -0025 and the North % of Lot 7, in Block 2, Sheffield's Second Subdivision, Anoka County, Minnesota [Torrens] 4648 Polk Street NE South'' /2 of Lot 2, and all of Lot 3, Block 2, 25- 30 -24 -33 -0023 Sheffield's Second Subdivision, Anoka County, Minnesota [Toren] 4618 Polk Street NE Lot 11, and the North 10 feet of Lot 12, Block 2, 25- 30 -24 -33 -0028 Sheffield's Second Subdivision, Anoka County, Minnesota [Torrens 47315342 MNI CL205 -55 CH COLUMBIA HEIGHTS AGENDA SECTION OTHER BUSINESS ITEMS ITEM NO. 8 MEETING DATE MARCH 7, 2016 CITY OF COLUMBIA HEIGHTS — ECONOMIC DEVELOPMENT AUTHORITY ITEM: Blue Cross Blue Shield Grant DEPARTMENT: Economic Development Authority CITY MANAGER'S APPROVAL: BY /DATE: Keith M Dahl, February 29, 2016 BY /DATE: BACKGROUND: Staff applied for the Active Places Demonstration Projects Grant offered through Blue Cross Blue Shield (BCBS) requesting $20,000. The demonstration project must support changes to policy or to the physical environment. These changes should focus on encouraging people to participate in physical activity. Staff proposed, in conjunction with the opening of the new library, temporary beautification improvements along Central Avenue NE between 39th Avenue and Gould Avenue. The temporary beautification improvements would incorporate a mural painted on the street at the intersection of Gould Ave. and Central Ave. NE, a mural painted on the South wall of the Heights Theater, and wood structure planter boxes sprouting edible vegetables lined along the East sidewalk of Central Ave. NE. Our hope is art will catch the eye, stimulate the mind, and create social responsibility shaping the communities sense of place, which will directly increase physical activity through traffic calming controls. All of the aforementioned beautification improvements would be entirely funded by the amount that is awarded to Columbia Heights from the BCBS grant. Over all, our vision with the temporary BCBS grant is to inspire change, change in the long -term to create a Central Business District that is safe for both pedestrians and cyclists, easily accessible for residents, and maintains a sense of place and pride within the community. City of Columbia Heights - EDA Letter COLUMBIA HEIGHTS AGENDA SECTION OTHER BUSINESS ITEMS ITEM NO. 9 MEETING DATE MARCH 7, 2016 CITY OF COLUMBIA HEIGHTS — ECONOMIC DEVELOPMENT AUTHORITY ITEM: Single Family Home Lot Sales Program — Potential Lot Sale Acquisition DEPARTMENT: Economic Development Authority CITY MANAGER'S APPROVAL: BY /DATE: Keith M Dahl, February 25, 2016 BY /DATE: BACKGROUND: Anoka County Community Action Program (ACCAP) reached out to the City at the end of January about possible acquisition of 4641/43 Polk Street, a duplex owned by ACCAP. Previously in 2015, the City had intentions of purchasing the property for $75,000; however, both parties shared different views on how to proceed. 4641/43 Polk Street is bound by a 30 year mortgage that matures in 2028 with the Minnesota Housing Finance Agency. ACCAP believed, at this time, the only way to persuade the Minnesota Housing Financing Agency to release the property from financial commitment was to have the City condemn the property. After staff review, the property was not found to be condemnable by City standards, which resulted in no further action from both parties. If the City is still interested in acquiring the property, ACCAP is requesting the City to submit an expression of interest for the acquisition of 4641/43 Polk Street. In which case, ACCAP will then approach the Minnesota Housing Finance Agency to persuade them to release the property from financial commitment. STAFF RECOMMENDATION: Staff recommends, if the City is still interested in acquisition of 4641/43 Polk Street, to submit a letter to ACCAP outlining the City's interest in the property and to offer no more than $75,000 for the property. City of Columbia Heights - EDA Letter