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HomeMy WebLinkAboutMay 2 2016 EDA Min ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF MAY 2, 2016 The meeting was called to order at 6:30 pm by Gary Peterson. Members Present: Donna Schmitt, Gary Peterson, John Murzyn, Marlaine Szurek, Bobby Williams, Bruce Nawrocki ,and Gerry Herringer Staff Present: Walt Fehst, Joseph Hogeboom, Keith Dahl, and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED CONSENT ITEMS 1.Approve the Minutes from April 4, 2016 . –The minutes were not included in the agenda packets, therefore they could not be approved at this meeting. 2.Approve the Financial Report and Payment of Bills for March 2016 on Resolution 2016-09. Questions by Members: There were no questions. Motion by Nawrocki, seconded by Williams, to waive the reading of Resolution 2016-09 there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Nawrocki , seconded by Williams, to approve the Financial Report and Payment of Bills for March as presented. All ayes. MOTION PASSED. RESOLUTION NO. 2016-09 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for Month of March, 2016 and the Payment of the Bills for the Month of March, 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 EDA Minutes Page 2 May 2, 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 March, 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 2nd day of May, 2016. Motion by: Nawrocki Seconded by: Williams Mayor Peterson then introduced Tony Rendle and his Fiancee,Sally, who have expressed an interest in the property located at 4303 Reservoir Blvd. Mr. Rundle told members he would like to construct a rambler style home on the property and already has a builder in mind to work with. He would like to have a home completed on that site by fall. He feels this type of home would fit nicely in with the surrounding homes in the area. He stated that he grew up in Columbia Heights, is very active in community events, and wants to build a home he can stay in long term. He chooses not to use Timbercraft as his builder so has not approached him directly. EDA Minutes Page 3 May 2, 2016 BUSINESS ITEM 1.Dismissal or Approval of the EDA’s Right of Reverter for the Real Property located at 4303 Reservoir Blvd NE, Columbia Heights, MN – Resolution 2016-10 On January 31, 2014, the Columbia Heights Economic Development Authority (EDA) and Timbercraft Enterprises, Inc. (Timbercraft) executed a Purchase and Redevelopment Agreement for 4303 Reservoir Boulevard NE, Columbia Heights, MN 55421. The Purchase and Redevelopment Agreement obligated Timbercraft to substantially complete construction by August 31, 2014 or the EDA would have the right to re-enter and take possession of the property. At the time of purchase, Timbercraft had a buyer eager to build a single family home, however due to unfortunate circumstances, the buyer fell through. Timbercraft began to market the property in hopes of finding a buyer interested in building a single family home. As of August 31, 2014, Timbercraft had failed to substantially complete construction, which gives the EDA a legal right to terminate the conveyance of the property at any time. In order for the EDA to re-enter and take possession of the property, a written demand had to be sent to Timbercraft explaining the specified situation that needs to be corrected within 30 days. However, this option was not executed in 2014 because it was in the EDA’s best interest for Timbercraft to continue to own the lot, thereby paying for marketing expenses, property maintenance, and taxes. Due to Mr. Rendle’s request, staff was directed to initiate the reverter clause outlined in the Purchase and Redevelopment Agreement with Timbercraft. Staff contacted Timbercraft to inquire about the status of the property to determine if an interested buyer is involved. It was discovered that Timbercraft has been working with an interested buyer since the beginning of November 2015, although it is unknown whether an actual Purchase Agreement between the perspective buyer and Timbercraft exists. Therefore, staff was directed to send a written letter to Timbercraft demanding the procurement of a Purchase Agreement with their interested buyer before the May 2, 2016 EDA meeting. Therefore, the EDA must decide whether or not to execute the reverter clause for the property located at 4303 Reservoir Blvd. NE pursuant of Section 15 of the Purchase and Redevelopment Agreement between the EDA and Timbercraft. By approving Resolution 2016-10, the EDA will effectively start the process of re-taking the property. As part of this process, the EDA must reimburse $35,000 to Timbercraft, which was the initial purchase price of the lot. Staff presented a couple of options for the EDA to consider and asked the EDA for direction on what action they want staff to pursue. EDA Minutes Page 4 May 2, 2016 CLOSED SESSION- The meeting was adjourned to a Closed Session at 6:38 pm to discuss the EDA’s Right of Reverter for the property located at 4303 Reservoir Blvd NE. The meeting re-convened at 7:22 pm. Hogeboom explained the reason the EDA adjourned into a closed session was due to legal obligations to the various parties. He said there was a request brought to the Board regarding a specific property that is not currently owned by the EDA, and there was also an existing agreement regarding this same property between parties that again do not involve the EDA directly, and these are confidential in nature. Motion by Szurek, seconded by Murzyn to direct staff to pursue legal action to exercise the th reverter clause as allowed in our agreement with Timbercraft on June 16 if building plans have not been submitted for review by 4 pm on June 15, 2016 for the property located at 4303 Reservoir Blvd NE. All ayes. MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016-10 RESOLUTION APPROVING THE EXERCISE OF THE EDA’S RIGHT OF REVERTER IN CONNECTION WITH A PARCEL IN THE CITY- WIDE SCATTERED SITE HOUSING TAX INCREMENT FINANCING DISTRICT WITHIN THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT OF THECITY OF COLUMBIA HEIGHTS . WHEREAS, on October 10, 2011, the City of Columbia Heights (the "City") approved creation by the Columbia Heights Economic Development Authority (“EDA”) of the City-Wide Scattered Site Housing Tax Increment Financing District (the "TIF District") within its Central Business District Redevelopment Project (the "Project"), by approval of a tax increment financing plan (the "TIF Plan) for the TIF District; and WHEREAS, the EDA and Timbercraft Enterprises, Inc. (the “Purchaser”) entered into a Purchase and Redevelopment Agreement dated January 31, 2014 (the “Contract”) for conveyance to the Purchaser and development by the Purchaser of a parcel within the TIF District located at 4303 Reservoir Boulevard NE in the City and described as follows: Lot 4, Block 4, Auditor’s Subdivision of Walton’s Second Subdivision of Reservoir Hills, Anoka County, Minnesota referred to as the “Subject Parcel;” and EDA Minutes Page 5 May 2, 2016 WHEREAS, pursuant to the Contract, the Purchaser was required to complete construction of certain Minimum Improvements (as defined in the Contract) within one year of the date of sale of the Subject Parcel, or by February 14, 2015, and any failure to complete such construction constitutes an event of default under the Contract; and WHEREAS, paragraph 15 of the Contract provides that upon 30 days’ notice to the Purchaser of an event of default due to failure to construct the Minimum Improvements, the EDA may exercise its right to re-enter and take possession of the Subject Parcel and to revest in the EDA the fee title to the Subject Parcel; and WHEREAS, as of the date hereof, the Purchaser has not commenced construction of the Minimum Improvements, and has been advised that such failure is an event of default pursuant to the Contract through the receipt of a notice of default delivered by EDA staff on March 28, 2016; and WHEREAS, the EDA has determined that it is in the best interest of the City to exercise its statutory and contractual right of reverter, as permitted under Minnesota Statutes, Sections 469.090 to 469.1081 (the “EDA Act”), particularly Section 469.105, subd. 5, and under paragraph 15 of the Contract. NOW THEREFORE, BE IT RESOLVED by the board of commissioners of the EDA as follows: 1. The EDA approves the exercise of its right of reverter pursuant to the Contract and EDA Act on June 16, 2016, if building plans are not submitted for review by 4 pm on June 15, 2016. 2. EDA staff are authorized and directed to work with EDA legal counsel to take such actions are required to perfect its right of reverter, including without limitation the drafting and filing of any proceedings in district court and, if determined to be necessary, the removal of the Subject Parcel from the TIF District. ADOPTED: _May 2nd_________, 2016 ATTEST: __________________________________ __________________________________ President Secretary/Treasurer EDA Minutes Page 6 May 2, 2016 2.Adoption of Minnesota General Records Retention Schedule for Cities- Resolution 2016-11 The State of Minnesota has provided a “General Records Retention Schedule for Minnesota Cities” which establishes minimum retention periods for municipal records based on the administrative, fiscal, legal and historical value of the records. The General Records Retention Schedule for Minnesota Cities was updated by the Minnesota Clerks and Finance Officers Association (MCFOA) in July, 2013. In March, the City Council adopted the General Records Retention Schedule for Minnesota Cities as the official data management rules and regulations for the City of Columbia Heights. Because the City now uses a standardized record retention schedule, the City Clerk and the Finance Director have recommended that the Economic Development Authority (EDA) adopt the same retention schedule. A copy of the General Records Retention Schedule for Minnesota Cities is attached for your reference. Staff recommends adoption of General Records Retention Schedule for Minnesota Cities by approval of Resolution 2016-11. Questions from Members: Schmitt asked when the HRA would meet to adopt this schedule and pass the new by-laws. Hogeboom told members he had reached out to Chair Diehm to see when she would be available. He is hoping to schedule a meeting in June or July sometime. Motion by Williams, seconded by Nawrocki to waive the reading of Resolution 2016-11, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams, Seconded by Nawrocki, to adopt Resolution 2016-11, Resolution Adopting the General Records Retention Schedule for Minnesota Cities. All ayes. MOTION PASSED. RESOLUTION NO. 2016-11 A Resolution Adopting the Minnesota General Records Retention Schedule for Cities WHEREAS , to comply with the Records Management Statute MS 138.17, it is necessary to adopt a plan for managing governmental records including the proper retention and disposal of municipal records; and EDA Minutes Page 7 May 2, 2016 WHEREAS , the Records Management Statute MS 138.17 establishes the Records Disposition Panel and requires all government entities to follow an orderly process in retaining and disposing of government information; and WHEREAS , the State of Minnesota has approved for use by all Minnesota Cities the “Minnesota General Records Retention Schedule for Cities” which authorizes cities adopting said schedule an orderly method of disposing of municipal records; and WHEREAS , the “Minnesota General Records Retention Schedule for Cities” is regularly updated. NOW THEREFORE BE IT RESOLVED that the Economic Development Authority of Columbia Heights, Minnesota hereby adopts the Minnesota General Records Retention schedule and directs the Executive Director and the Columbia Heights City Clerk to notify the Minnesota Historical Society/State Archives Department. BE IT FURTHER RESOLVED that following state approval, the Economic Development Department is directed to provide for retention and destruction of records as set forth in said schedule and its subsequent revisions. 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 _2nd________ day of ______May________________, 2016 Offered by: Williams Seconded by: Nawrocki Roll Call: All ayes Gary L. Peterson, President Attest: Shelley Hanson, Secretary The meeting was adjourned at 7:30 pm. Respectfully submitted, Shelley Hanson Secretary