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
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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
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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.
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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
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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
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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
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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