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HomeMy WebLinkAboutJan 4 2016 EDA Min 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. Questions 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. MOTION PASSED. Motion by Murzyn, seconded by Szurek, to approve the consent agenda as presented. All ayes. MOTION PASSED. 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. th Passed this 4 day of January, 2016. Motion by: Murzyn Seconded by: Szurek BUSINESS ITEM 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. Questions 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. MOTION PASSED. 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. MOTION PASSED. 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 IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ("EDA Act"), and is currently administering the Downtown CBD Redevelopment Project ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. Within the Redevelopment Project, the Authority has acquired parcels suitable for the construction of single-family homes, which parcels are described in Exhibit A hereto (the “Subject Parcels”). 1.03. The Authority intends to convey the Subject Parcels to contractors that will construct homes for sale to owner-occupants, and 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 Proceedings. 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 property 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 ½, 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 ½ 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 ½ 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 Hearing Closed. Motion by Williams, seconded by Szurek, to waive the reading of Resolution 2016-03, there being ample copies available to the public. All ayes. MOTION PASSED. 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. MOTION PASSED. 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 ½, 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 ½ 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 ½ 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 Goalsetting- 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 th on development projects (i.e. the Rainbow Site, and the 47 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 1st at 6:30 in Conference Room 1. Hogeboom will also notify members of the special goal setting meeting that will be held. The meeting was adjourned at 6:58 pm. Respectfully submitted, Shelley Hanson Secretary