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HomeMy WebLinkAbout08-08-2016 CCPCH COLUMBIA HEIGHTS City of Columbia Heights 590 40th Avenue NE, Columbia Heights, MN 55421 -3878 (763) 706 -3600 TDD (763) 706 -3692 Visit our website at: www.columbiaheightsmn.gov Mayor Gary L. Peterson Councilmembers Robert A. Williams Bruce Nawrocki Donna Schmitt John Murzyn, Jr. City Manager Walter R. Fehst The following is the agenda for the regular meeting of the City Council to be held at 7:00 PM on Monday, August 8, 2016 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota. The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for disabled persons are available upon request when the request is made at least 96 hours in advance. Please call the City Clerk at 763 - 706 -3611, to make arrangements. (TDD /706 -3692 for deaf or hearing impaired only.) 1. CALL TO ORDER IA. APPOINT SECRETARY PRO TEM 2. ROLL CALL 3. INVOCATION- Invocation provided by Bill Hugo, St Matthew Lutheran Church 4. PLEDGE OF ALLEGIANCE 5. ADDITIONS /DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) 6. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS Introduction of Sarah Burghardt, Sun Focus reporter for the City of Columbia Heights 7. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) A. Approve Minutes of the City Council MOTION: Move to approve the minutes of the City Council meeting of July 25, 2016 pg 3 B. Accept Board and Commission Meeting Minutes MOTION: Move to accept the minutes of the EDA meeting of June 6, 2016 pg 6 pg 11 MOTION: Move to accept the minutes of the EDA Special meeting June 13, 2016 pg 16 MOTION: Move to accept the minutes of the EDA meeting of July 21, 2016 pg 42 MOTION: Move to accept the minutes of the HRA meeting of March 14, 2016 pg 46 C. City of Columbia Heights, Minnesota Resolution 2016 -65, Accepting a contribution from the Columbia Heights Activity Fund in the amount of $17,373 and amending the 2016 Budget for the City's Contributions Fund 883 for the same amount. MOTION: Move to waive the reading of Resolution 2016 -65, there being ample copies available to the public. City of Columbia Heights August 8, 2016 City Council Agenda Page 2 MOTION: Move to adopt City of Columbia Heights, Minnesota, Resolution 2016 -65, being a resolution accepting a contribution of $17,373 from the Columbia Heights Activity Fund, and amending the 2016 budget for the City's Contributions Fund 883 for the same amount. D. Resolution 2016 -66 Awarding the Purchase of a Police Vehicle and Radio, and Amending the pg 48 Related 2016 Budgets. MOTION: Move to waive the reading of Resolution 2016 -66, there being ample copies available to the public. MOTION: Move to adopt City of Columbia Heights, Minnesota, Resolution 2016 -66, being a resolution awarding the purchase of a police vehicle to Ford of Hibbing in the amount of $24,178, the purchase of a police radio through Anoka County in the amount of $4,550, and amending the 2016 budgets of the Insurance Fund 884 and the Capital Equipment Fund 431 to appropriate these amounts. E. An Ordinance opting out of the requirements of Minnesota Statutes, Section 462.3593. pg 51 MOTION: Waive the reading of Ordinance No 1632, there being ample copies available to the public. MOTION: Move to approve Ordinance No 1632, being an Ordinance opting out of the requirements of Minnesota Statutes, Section 462.3593, on first consideration. The second consideration will take place on August 22nd, 2016 at approximately 7:00pm in the Council Chambers of Columbia Heights City Hall. F. Approve Business License Applications pg 54 MOTION: Move to approve the items as listed on the business license agenda for August 8, 2016. G. Payment of Bills pg 56 MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8, the City Council has received the list of claims paid covering check number 162225 through 162407 in the amount of $ 1,611,981.83. MOTION: Move to approve the Consent Agenda items. 8. PUBLIC HEARINGS 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions B. Bid Considerations C. New Business and Reports 10. ADMINISTRATIVE REPORTS Report of the City Manager Report of the City Attorney 11. CITIZENS FORUM At this time, citizens have an opportunity to discuss with the Council items not on the regular agenda. Citizens are requested to limit their comments to five minutes. Anyone who would like to speak shall state his /her name and address for the record. 12.f ADJ RNMEN Walt Fehst, 6ity Man "ger OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING JULY 25, 2016 The following are the minutes for the regular meeting of the City Council held at 7:00 PM on Monday July 25, 2016 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota 1. CALL TO ORDER Mayor Peterson called the meeting to order at 7:27 p.m. 2. ROLL CALL Present: Mayor Peterson, Councilmembers Nawrocki, Williams, Schmitt and Murzyn, Jr. Also Present: Walt Fehst; City Manager, Jim Hoeft; City Attorney, and Katie Bruno; City Clerk /Council Secretary 3. INVOCATION Invocation provided by Max Richter, Community United Methodist Church 4. PLEDGE OF ALLEGIANCE 5. ADDITIONS /DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) 1. Mayor Peterson announced item 8A is being removed; the property was brought into compliance. 2. Councilmember Schmitt requested the addition of a report from the League of Minnesota Cities Policy Committee meeting be added under New Business and Reports. 6. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS A. Presentation from Crest View Communities; Shirley Barnes Shirley Barnes presented a Certificate of Commendation for the City of Columbia Heights and the Columbia Heights Public Schools, recognizing the recent designation of All America City in 2016. Mayor Peterson accepted the Resolution on behalf of the City. 7. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) A. Approve Minutes of the City Council MOTION: Move to approve the minutes of the City Council meeting of July 11, 2016 B. Accept Board and Commission Meeting Minutes MOTION: Move to accept the minutes of the Charter Commission meeting of April 21, 2016 MOTION: Move to accept the minutes of the Library Board meeting of June 1, 2016 C. Adopt Summary for publication of Ordinance No. 1628 being an Ordinance amending Chapter 8, Article IV of City Code. MOTION: Move to adopt a summary for publication for Ordinance No. 1628 being an Ordinance amending 3 Chapter 8, Article IV of City Code of 2005 relating to the adoption of the Minnesota State Fire Code. D. Consideration of approval of attached list of rental housing applications. MOTION: Move to approve the items listed for rental housing license applications for July 25, 2016, in that they have met the requirements of the Property Maintenance Code. E. Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for July 25, 2016. F. Payment of Bills MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8, the City Council has received the list of claims paid covering check number 162033 through 162224 in the amount of $1,010,345.76. Motion by Councilmember Williams, seconded by Councilmember Nawrocki to approve the consent agenda. All Ayes, Motion Carried. 8. PUBLIC HEARINGS A. Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against rental properties at 4515 Fillmore Street NE (Resolution No. 2016 -55) for failure to meet the requirements of the Property Maintenance Codes. (Item removed, property owner has made required corrections.) 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions B. Bid Considerations C. New Business and Reports 1. Report from the League of Minnesota Cities Policy Committee meeting. Councilmember Schmitt reported she attended the LMC Policy meeting on July 18th. She reported cities will need to look at the small houses forhealthcare legislation. City Manager Fehst reported the council is scheduled to discuss that at the August worksession. Councilmember Schmitt also noted changes in the retention policy for body cameras. City Attorney Jim Hoeft reported Columbia Heights has an existing policy, and he will review it with Captain Austin and blend it with the policy created by the LMC. Statewide Massage Therapist licensure and pawn broker regulation was discussed as well. Councilmember Nawrocki also attended the policy meeting; reporting he attended the improving fiscal futures committee. A copy of the proposed law regarding temporary health care dwellings was distributed. 10. ADMINISTRATIVE REPORTS Councilmember Nawrocki suggested a letter be sent to a resident who assisted stranded travelers during a recent storm. Councilmember Nawrocki requested an updated on the total of the new library expenses, including all expenses as well as revenue sources. Councilmember Nawrocki reported the parade is not on the cable channel. Councilmember Nawrocki requested the records be checked regarding the property at 4860 Monroe to determine when the house was built. City Manager Walt Fehst reported the house is currently lower than the street. Councilmember Nawrocki reported he would have liked to see more details in the newsletter article regarding the tax levy increase. Councilmember Nawrocki requested the City Manager let the Council know when he will be out of the office. Mayor Peterson announced National Night Out is Tuesday August 2nd. The four visitors from Lomianki will be visiting the week of August 2nd as well. 11. CITIZENS FORUM Connie Buesgens- 102144th Ave NE asked if he temporary dwelling item will be discussed at a future council meeting, as she would like to hear both sides of the issue. City Manager Walt Fehst explained staff is not comfortable with the current proposal for a variety of reasons, also noting most other cities have chosen to opt out. Frost Simula -1700 49th Ave NE reported that predatory remodeling continues to be a recurrent theme in the Twin Cities. Mr. Simula suggested a point of sale program could be beneficial. City Attorney Jim Hoeft reported the City has looked at point of sales programs in the past. Hoeft also commented that there are crooks in all areas, and it is important for the buyer to beware. Mayor Peterson suggested neighbors also be observant and aware of work being done in their neighborhoods without the proper permits; encouraging residents to call the Building Inspector. Mayor Peterson reminded residents to remember our servicemen and women, as well as our Police Officers and Firefighters. 12. ADJOURNMENT Meeting adjourned at 8:09 p.m. Respectively Submitted, Katie Bruno, Council Secretary /City Clerk ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF JUNE 6, 2016 The meeting was called to order at 6:30 pm by Bruce Nawrocki (Secretary /Treasurer). Members Present: Donna Schmitt, John Murzyn, Marlaine Szurek„ Bruce Nawrocki and Gerry Herringer. Bobby Williams arrived at 6:55 pm. Members Absent: Gary Peterson Staff Present: Walt Fehst, Joseph Hogeboom, Keith Dahl, Joe Kloiber, Gary Gorman, and Shelley Hanson. Legal Counsel: Martha Ingram from Kennedy & Graven Stacy Kvilvang from Ehlers and David Mullen fi•om Dougherty & Co. PLEDGE OF ALLEGIANCE- RECITED CONSENT ITEMS 1. Approve the Minutes from April 4, 2016, and May 2, 2016— 2. Approve the Financial Report and Payment of Bills for April 2016 on Resolution 2016- 12. Questions by Members: No questions or comments. Motion by Szurek , seconded by Murzyn, to waive the reading of Resolution 2016 -12 there being an ample amount of copies available to the public. All ayes. MOTIONPASSED. Motion by Szurek, seconded by Murzyn, to approve the Minutes and Financial Report and Payment of Bills for April as presented. All ayes. MOTIONPASSED. RESOLUTION NO. 2016-12 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for Month of APRIL, 2016 and the Payment of the Bills for the Month of April, 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 4791940 CL205 -3 EDA Minutes Page 2 June 6, 2016 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 April, 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. Passed this 6th day of June, 2016. Motion by: Szurek Seconded by: Murzyn BUSINESS ITEM 1. Discussion of Refinancing Tax Increment Refunding Revenue Bonds - Series 2016 for the Huset Park Redevelopment Area Project. Hogeboom explained that Martha Ingram, the EDA Bond Attorney, had supplied the Board members with a memorandum dated June 1, 2016 summarizing Refunding Bonds for the Huset Park Development. This memo addressed the Series 2007 bonds issued under the prior contract with an outstanding amount of $2,475,000 for public infrastructure improvements and another with an outstanding amount of $6,650,000 to cover redevelopment costs within the TIF District. Ingram reminded the members that these are not General Obligation Bonds, but are Revenue Bonds supported by Revenues fiom the TIF District. 4791941 CL205 -3 2 EDA Minutes Page 3 June 6, 2016 The Redeveloper has requested a refund of the current bonds because it will lower the interest rate which means the debt service payments on the Refunding Bonds will be lower. This will result in some tax increment remaining after payment on the Refunding Bonds, which will be used to pay down the TIF Note (in addition, you will recall that the Contract requires the Redeveloper to construct a senior housing facility within the TIF District, which will generate additional tax increment that will also be used to pay principal and interest on the TIF Note). The Redeveloper recognizes that refunding the Current Bonds primarily benefits the Redeveloper, and has therefore agreed to pay all actual costs of issuance related to the issuance of the Refunding Bonds. The EDA will not pay any costs related to the refunding. In addition, the Redeveloper will pay an administrative fee of $100,000 to the EDA to be allocated to other redevelopment purposes within the City. The EDA must adopt a Resolution awarding the sale of the Refunding Bonds along with approving several documents required in connection with the refunding. The EDA's action must then be approved by the City Council. This will be brought to both the EDA and the City Council at the June 13, 2016 meeting for approval. Ingram further explained the format of the Resolution which was drafted to allow flexibility for both the timing of the transaction and to get the best rates possible without the need to wait for additional scheduled meetings. Stacy Kvilvang from Ehlers and a representative from Dougherty & Co. were present to answer questions of the members. Questions by members: Nawrocki asked what the benefit was to the City. Ingram stated that the City will receive the administrative fee of $100,000 and that the lower interest rate will allow the developer to pay down the TIF note quicker. Heninger asked for more detail on the parameter approach to the Resolution approving the Refund of the Bonds which Ingram provided. He asked what rating the bonds would have. The underwriter stated that the bonds are not rated. Heiringer then asked how the amount of $100,000 was arrived at as the administrative fee the City would be paid. Kloiber (Finance Director) told members that an estimated figure was arrived at based on the interest savings and then the final amount was established through far-ther negotiations. Hogeboom told members that no action was needed at this meeting, as the Resolution will be considered at the June 13th special meeting. 479194v1 CL205 -3 3 8 EDA Minutes Page 4 June 6, 2016 2. Conveyance of Certain Real Property from the EDA to the City - Resolution 2016 -13. Dahl told members that over the years, the Columbia Heights Economic Development Authority (EDA) has acquired property within the City of Columbia Heights for economic development purposes. The property that the EDA acquires is exempt from property tax under Minnesota Statues, Section 272.02, Subdivision 39 for a specified amount of time. The EDA will start paying property taxes at the end of the applicable exemption period. If the EDA determines that the redevelopment for a specific property will take longer than the exemption period or the EDA determines to utilize specific property for City use, it is in the EDA's best interest to transfer title of certain properties to the City of Columbia Heights. Staff has identified seven properties that are in the EDA's best interest to transfer title because these seven properties have been dedicated for municipal use by the City; these properties are as follows: 825 41 st Ave. 837 41 st Ave. 894 42nd Ave. 4301 Quincy St. 839 41st Ave. 828 40th Ave. 1309 Circle Terrace Blvd. PID: 35- 30 -24 -14 -0151 PID: 35- 30 -24 -14 -0155 PID: 35- 30 -24 -14 -0157 PID: 35- 30 -24 -14 -0159 PID: 35- 30 -24 -14 -0160 PID: 35- 30 -24 -41 -0114 PID: 36-30-24-24-0025 Dahl told members that the first 5 properties are part of the Public Safety Site, and therefore it makes sense to have it in the City's name to remain tax exempt. The lot at 828 40th Avenue is currently the community garden space across the street from the Library. If not transferred to the City, the EDA will have to start paying taxes on the lot next year. The lot on Circle Terrace is the site being used to build the community building at the City of Peace Park and as park land it should be owned by the City. Staff recommends approval of Resolution 2016 -13, a resolution authorizing the conveyance of the aforementioned, EDA owned, properties to the City. Questions from members: Schmitt asked if the 828 40th Ave site could still be sold with the Library if someone wants it. Schmitt was told it could still be sold. Herringer asked if the transfer would have any effect on the restrictions we have on that lot since it was purchased with CDBG funds. Kloiber stated that the restrictions would still pertain to the site and that it could result in the City having to repay a proportionate amount of the property value to Anoka County. However, he said Anoka County has worked with the City in the past to re -grant the funds somehow, or there are several ways to meet the conditions. 479194v] CL205 -3 4 EDA Minutes Page 5 June 6, 2016 Schmitt said the legal descriptions should be verified as she didn't think some of them made sense. Staff will confirm they are correct. Nawrocki asked how much it would cost to do the transfers. Hogeboom stated that it will only cost the recording fees to record the Title changes and that it will save the EDA from having to pay taxes on the properties. Motion by Szurek , seconded by Schmitt, to waive the reading of Resolution 2016 -13, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Szurek , seconded by Schmitt, to adopt Resolution 2016 -13, Resolution authorizing the conveyance of certain property by the Columbia Heights Economic Development Authority to the City of Columbia Heights. All ayes. MOTIONPASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016-13 RESOLUTION AUTHORIZING THE CONVEYANCE OF CERTAIN PROPERTY BY THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY TO THE CITY OF COLUMBIA HEIGHTS 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 owns certain property (the "Property") located in the City of Columbia Heights (the "City "). A description of the Property is attached as Exhibit A. 1.02. The City has constructed a public works facility on five of the parcels snaking up the Property, a community garden on the sixth parcel, and a children's playground on the seventh. 1.03. The Property thus having been dedicated to municipal uses by the City, the Authority has determined that it is in the best interest of the Authority and City that the Authority convey the Property to the City. Section 2. Authority Approval, Further Proceedings. 2.01. The Authority hereby approves the conveyance of the Property to the City, to be held by the City for its municipal purposes. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority any documents required to carry out, on behalf of the Authority, the conveyance of the Property, including without limitation any deed. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 6th day of June, 2016. President ATTEST: Secretary 4791940 CL205 -3 5 10 EDA Minutes Page 6 June 6, 2016 EXHIBIT A (Legal Descriptions were corrected from those in agenda) Property Public safety facility: Lot 1, Block 1, Northwestern 2nd Addition, Anoka County, Minnesota Outlots A, C, E, and F, Northwestern 2nd Addition, Anoka County, Minnesota 825 41St Avenue, PID No. 35- 30 -24 -14 -0151 837 41" Avenue, PID No. 35- 30 -24 -14 -0155 89442 d Avenue, PID No. 35- 30 -24 -14 -0157 4301 Quincy Street, PID No. 35- 30 -24 -14 -0159 839 40 Avenue, PID No. 35- 30 -24 -14 -0160 Community garden: Lots 47 and 48, Block 63, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota 828 40t'' Avenue, PID No. 35- 30 -24 -41 -0114 Children's playground: And That part of Lot Nine (9), Block One (1), lying east of the west line of former Lot forty -three (43), Block Four (4), Reservoir Hills, Columbia Heights, Anoka County, Minnesota, all in Circle Terrace 2nd Addition, together with an easement for driveway purposes over the southwesterly 4 feet of Lot 8, Block 1, Circle Terrace 2nd Addition, Anoka County, Minnesota. (Torrens) That part of Lot 9, Block 1, Circle Terrace 2nd Addition which lies in Lots 41 and 42, Reservoir Hills, together with an easement for driveway purposes over the Southwesterly 4 feet of Lot 8, Block 1, Circle Terrace 2nd Addition, Anoka County, Minnesota. (Abstract) 1309 Circle Terrace Blvd., PID No. 36- 30 -24 -24 -0025 3. Single Family Rental Home Property Discussion The Economic Development Authority (EDA) held a goal setting session with the Planning and Zoning Commission (P &Z) in March to review redevelopment goals within Columbia Heights. One of the goals reviewed was establishing a comprehensive housing program that will help increase values, manage and reduce the number of single family rental properties, generate a wider range of price point options and encourage reinvestment. Following direction from the EDA, staff was advised to research single - family rental housing and reconvene a separate meeting to discuss how the City can enhance neighborhood livability through more proactive management of single - family rental housing. Therefore, staff desires to continue discussions about the single - family rental housing within Columbia Heights. M EDA Minutes Page 7 June 6, 2016 There are many factors that directly and indirectly contribute to local single - family rental markets — including population, demographics, area median income (AMI), age of housing stock, and area economics. Columbia Heights experienced a surge in single - family rental housing starting in 2008 when the collapse of the housing market swept through the Twin Cities. The economic turmoil of the Great Recession displaced many homeowners as high unemployment increased the amount of foreclosures. And as foreclosures increased, Columbia Height's rental market experienced a resurgence of single - family rental housing. Since 2008, Community Development and Fire Department staff have worked in tandem to track rental property trends. The figures below were attained by Columbia Heights through the issuance of rental licenses over the years. 2015 is the most recent data calculated because the total rental permits issued cannot be attained until the end of a given year. Staff would like to note, single - family rental housing has been declining over the last few years though rental permits have gradually increased. Also, attached is the Twin Cities Metro Rental Chart for comparison of single- family rental housing metro wide. 2008 2009 2010 2011 2012 2013 2014 2015 Single - Family Permits Total Rental Permits Issued Issued Percentage of Single - Family Rental Prouerties 668 444 66.47% 8.16% 721 483 66.99% 8.88% 761 515 67.67% 9.47% 864 572 66.20% 10.52% 872 627 71.90% 11.53% 939 610 64.96% 11.21% 977 569 58.24% 10.46% 971 503 51.80% 9.25% *Total Single- Family Properties in Columbia Heights is 5439 Rental property trends in Columbia Heights seem to have plateaued and /or started to decrease, however rental properties are still branded with negative connotations. Community Development staff met with colleagues from the Fire Department and Police Department to discuss property maintenance concerns and crime associated with single - family rental housing. Staff's intent was to determine if these negative connotations associated with rental properties are, in fact, real problems or actually just preconceived notions. 12 EDA Minutes Page 8 June 6, 2016 The conversations derived from the staff meeting concluded that single - family rental housing is not the real issue and incorporating more proactive management of single - family rental housing may not enhance neighborhood livability. The real issues that brand rental properties with negative connotations are, in fact, contributed to rental density and cultural barriers. Attached is Columbia Heights Single- Family Rental Housing, Crime Overlay Map to represent the correlation between crime and rental density. Staff isn't making a recommendation. This is only meant to provide information to the EDA to identify different options, if any, to proceed with enhancing neighborhood livability through more proactive management of single- family rental housing. Comments from members: Gary Gorman, Fire Chief, stated the figures for 2016 to date are as follows: 984 Total Rental Units, plus 67 family exempt properties, and approximately 20 more in process. Szurek thinks we have a much higher percentage of single family homes as rental units than other suburbs. She thinks it is better for the City to have more owner occupied homes as owners tend to take better care of their properties. Nawrocki agreed with Szurek. There was a discussion as to the reasons we have such a high percentage of rental property. During the housing /foreclosure crisis it became a lucrative investment for buyers to buy up homes and rent them out. Our homes were especially attractive since they were affordable and companies came in and purchased dozens of them. Gorman stated prior to the housing crisis most rental properties were owned by individuals who had just a few homes, compared to the present where corporations have purchased them in large numbers. Nawrocki asked what pro- active things the Council should consider. Dahl said there are several options for the EDA/City Council to consider: Limit the number of rental. This has been attempted in several cities, but usually in small towns with colleges. The issue of limiting rentals has gone to litigation all the way to the Supreme Court, but was never resolved because the parties either were issued rental licenses or they sold the properties before the case was decided. 13 EDA Minutes Page 9 June 6, 2016 2. Higher density rental usually increases crimes rates in the surrounding area. Crime rates aren't necessarily increased when comparing a specific owner occupied home to a rental home, but when the density of rentals is significant, the crime rate tends to be higher. So possibly limiting rentals to so many per block could be considered. 3. Our demographics are also part of the problem. So many of our renters and owners are immigrants and may not understand how to take care of a home and the expectations of maintaining a house and yard. She said it might help if there were classes to help educate them on the basics. Gorman told members that property maintenance complaints are about the same on owner occupied residences versus rental property. He said their- department averages about 400 -500 lawn/weed complaints per year and about 200 complaints for junk/storage issues. 4. Let the market dictate and just keep monitoring. 5. Hold a class about how to take care of property, especially if cited. 6. Could go back to offering rebates for home improvements but limit them to work that increases the value such as remodeling or additions, not for maintenance /repair projects. 4. Update on 4303 Reservoir Blvd Dahl informed the Commission members that Timbercraft has submitted the plans for the construction of the single farnily home for review. Nawrocki asked if the item regarding Tollberg Homes was to be considered as part of this agenda. Dahl explained briefly what the information passed out to the members was about and said he would have to get more information about this before it could be brought to the EDA for consideration. Formal action would be required to approve the request which could not happen at this meeting. Hogeboom reminded members there will be a special EDA meeting on June 13, 2016 prior to the Council Meeting to take action on 3 items. The meeting was adjourned at 7:30 pm. Respectfully submitted, 14 Shelley Hanson Secretary 15 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE SPECIAL MEETING OF JUNE 13, 2016 The meeting was called to order at 6:30 pm by Gary Peterson. Members Present: Donna Schmitt, John Murzyn, Marlaine Szurek„ Bruce Nawrocki , Gerry Herringer, Bobby Williams and Gary Peterson. Staff Present: Walt Fehst, Joseph Hogeboom, Keith Dahl, Joe Kloiber, and Shelley Hanson. Also present: Martha Ingram from Kennedy & Graven and Frank Hogan from Dougherty & Co. PLEDGE OF ALLEGIANCE - RECITED BUSINESS ITEM 1. Authorization to Issuance of Tax Increment Revenue Refunding Bonds ( Huset Park Area Redevelopment Project), Series 2016, and Providing the Form, Terms, Pledge of Revenues, and Findings, Covenants, and Directions Relating to the Issuance of Such Obligations - Resolution 2016 -14. Hogeboom explained that this issue was discussed at the June Oh meeting and that he had provided the members with a report that provided a brief history of the Columbia Heights Economic Development Authority's $2,890,000 Tax Increment Revenue Bonds ( Huset Park Area Redevelopment Project), Series 2007, which currently remain outstanding in the amount of $2,475,000 (the "Current Bonds "), as well as a summary of the process required to refund the Current Bonds. The Current Bonds were issued in connection with certain public infrastructure improvements constructed as part of the Huset Park Tax Increment Financing District (the "TIF District "), pursuant to the Amended and Restated Contract for Private Redevelopment between the Columbia Heights Economic Development Authority ( "EDA "), the City of Columbia Heights ( "City "), and BNC National Bank, as successor in interest to Huset Park Development Corporation ( "BNC''), dated as of August 1, 2007, as amended (the "Prior Contract "), and pursuant to the Second Amended and Restated Contract for Private Redevelopment between the EDA, the City, and Columbia Heights Leased Housing Associates I, LLLP (the "Redeveloper"), dated as of October 30, 2015 (the "Contract "). The EDA issued the Current Bonds pursuant to the Prior Contract. The EDA pledged tax increment generated by all improvements to be constructed on the Redevelopment Property to the payment of debt service on the Current Bonds. The Current Bonds were issued after the first phases of construction required under the Prior Contract were complete, and the par amount of the Current Bonds was based on the flow of tax increment generated by the completed phases, such that tax increment generated by the completed phases of construction has always been sufficient to pay principal and interest in full on each payment date. 16 EDA Minutes Page 2 June 13, 2016 The EDA also issued its Taxable Tax Increment Revenue Note, Series 2007A, in the principal amount of $6,650,000 (the "TIF Note ") to Huset Park Development Corporation ( "HPDC "), to reimburse HPDC for certain public redevelopment costs incurred by HPDC in development of the housing improvements within the TIF District. Like the Current Bonds, the TIF Note is also secured by tax increment generated within the TIF District, but on a subordinate basis to the Current Bonds. Since HPDC defaulted under the Prior Contract and never completed any improvements beyond the first phases, there has not been enough tax increment generated within the TIF District to pay any debt service on the TIF Note. Therefore, the TIF Note remains outstanding in the full original principal amount. The TIF Note was assigned to the Redeveloper on October 30, 2015 at the real estate closing on the Redevelopment Property from BNC to the Redeveloper, and is now held by the Redeveloper. The Contract with the Redeveloper, which the EDA and City Council approved in April of this year, provides that the EDA will agree to refund the Current Bonds if requested by the Redeveloper (see pertinent language in the attached Exhibit A). The Redeveloper has now made this request. Refunding the Current Bonds is financially beneficial to the Redeveloper because bonds issued to refund the Current Bonds (the "Refunding Bonds ") will carry lower interest rates, which means that the debt service payments on the Refunding Bonds will be lower. This will result in some tax increment remaining after payment on the Refunding Bonds, which will be used to pay down the TIF Note (in addition, you will recall that the Contract requires the Redeveloper to construct a senior housing facility within the TIF District, which will generate additional tax increment that will also be used to pay principal and interest on the TIF Note). The Redeveloper recognizes that refunding the Current Bonds primarily benefits the Redeveloper, and has therefore agreed to pay all actual costs of issuance related to the issuance of the Refunding Bonds. The EDA will not pay any costs related to the refunding. In addition, the Redeveloper will pay an administrative fee of $100,000 to the EDA to be allocated to other redevelopment purposes within the City. The Redeveloper has engaged Dougherty & Company as underwriter (i.e. purchaser) for the Refunding Bonds. In order to refund the Current Bonds, the EDA must adopt a resolution awarding the sale of the Refunding Bonds to Dougherty and approving several documents required in connection with the refunding, and the EDA's action must be approved by the City Council. The actions being considered by the EDA and City Council on this date and Martha Ingram ,an associate from Kennedy and Graven was present at both the EDA and the Council meetings to answer any questions the EDA and /or City Council had about the legal documents, the financial aspects of the process, or the contractual arrangement providing for this refunding. A copy of the First Amendment to Paying Agent Agreement between Columbia Heights EDA and Bond Trust Services Corp was included in the agenda packets for the members to review. 17 EDA Minutes Page 3 June 6, 2016 Questions by members: Nawrocki wanted confirmation that if the Tax Revenue doesn't generate enough funds that the City /EDA has no liability financially to the developer or bond holder. Ingram stated that is correct. Herringer questioned the amount of interest accumulating on the outstanding note. Kloiber stated that he can look up the exact amount for the members if they want it but the note is subordinate to the bond and that by taking this action more money can be applied to the Note's principal and interest. He explained that once again the City /EDA is not responsible for the Note payments. Motion by Williams, seconded by Nawrocki , to waive the reading of Resolution 2016 -14, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Williams, seconded by Nawrocki, to adopt Resolution 2016 -14, a Resolution to Issue Tax Increment Revenue Refunding Bonds (Huset Park Area Redevelopment Project), Series 2016, and Providing the Form, Terms, Pledge of Revenues, and Findings, Covenants, and Directions Relating to the Issuance of Such Obligations. All ayes. MOTIONPASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016-14 RESOLUTION AUTHORIZING THE ISSUANCE OF TAX INCREMENT REVENUE REFUNDING BONDS (HUSET PARK AREA REDEVELOPMENT PROJECT), SERIES 2016, AND PROVIDING THE FORM, TERMS, PLEDGE OF REVENUES, AND FINDINGS, COVENANTS, AND DIRECTIONS RELATING TO THE ISSUANCE OF SUCH OBLIGATIONS BE IT RESOLVED by the Board of Commissioners (the "Board ") of the Columbia Heights Economic Development Authority (the "Authority "), as follows: SECTION 1. BACKGROUND. 18