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HomeMy WebLinkAboutSept 6 2016 EDA Min ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF SEPTEMBER 6, 2016 The meeting was called to order at 6:00 pm by Chair Gary Peterson Members Present: Donna Schmitt, John Murzyn, Marlaine Szurek,, Gerry Herringer, Bruce Nawrocki , Bobby Williams , and Gary Peterson. Staff Present: Walt Fehst, Joseph Hogeboom, Keith Dahl, and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED CONSENT ITEMS 1.Approve the Minutes from August 1, 2016 – 2.Approve the Financial Report and Payment of Bills for July 2016 on Resolution 2016- 22. Questions by Members: No questions or comments. Motion by Nawrocki, seconded by Williams, to waive the reading of Resolution 2016-22 there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Nawrocki, seconded by Williams, to approve the Minutes and Financial Report and Payment of Bills for July as presented. All ayes. MOTION PASSED. RESOLUTION NO. 2016-22 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for Month of July, 2016 and the Payment of the Bills for the Month of July, 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 statements for the month of July, 2016 has been reviewed by the EDA Commission; and EDA Minutes Page 2 September 6, 2016 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 September, 2016. Motion by: Nawrocki Seconded by: Williams BUSINESS ITEM 1. Established of the Hy-Vee TIF District – Resolution 2016-23 Dahl told members that Hy-Vee has requested public financial assistance for the redevelopment of the property located at 4300 Central Avenue NE. Many specifics are still being discussed between staff, Ehlers and Hy-Vee however, possible uses for which public financial assistance is being requested consist of environmental cleanup, land acquisition, demolition, additions, site improvements, site work, remodel of exterior, and soil corrections. In Columbia Heights, the Columbia Heights Economic Development Authority (EDA) is the authority authorized to exercise Tax Increment Financing (TIF) powers, however the EDA may not exercise any TIF powers without the prior approval of the City Council (Council) of the City of Columbia Heights (City). Previously, the EDA and the Council established a redevelopment project designated as the Downtown Central Business District Revitalization Plan. The revitalization plan has encouraged development and redevelopment within the City along Central Avenue; however, modifications must be added to encompass the renovations proposed by Hy-Vee. In order to establish a TIF District for Hy-Vee, certain events must occur that are outlined on the attached document (TIF Establishment Schedule of Events). As part of that process, the EDA must formally request that EDA Minutes Page 3 Spt. 6, 2016 the Council call for a public hearing to consider modifications to the Downtown Central Business District Revitalization Plan and for the establishment of the Hy-Vee TIF District. Dahl said this Resolution only calls for the Public Hearing. It does not approve creating a TIF District. Hogeboom told members that Hy-Vee is going to the Planning & Zoning meeting later tonight for their Site Plan approval. They want to close on the property shortly and have requested a TIF District be established for this project. Staff and Ehlers will study the matter to see what impact this will have for the City. This will be done so a recommendation can be made in time for the October Public Hearing. Staff recommends adopting Resolution 2016-23, a resolution requesting City Council to call for a Public Hearing for the Modification to the Downtown Central Business District Revitalization Plan and for the Establishment of the Hy-Vee TIF District. Questions/comments from members: Nawrocki asked how much this parcel has cost the City in the past. He suggested staff look back to the 1970’s or so to see if there are records regarding the use of TIF funds. Motion by Herringer, seconded by Murzyn , to waive the reading of Resolution 2016-23, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Herringer , seconded by Murzyn, to adopt Resolution 2016-23, a resolution requesting City Council to call for a Public Hearing on October 24, 2016 at approximately 7:00 PM for the Modification to the Downtown Central Business District Revitalization Plan for the CBD Redevelopment Project and the Establishment of the Hy-Vee TIF District. Roll Call: Ayes- Szurek, Schmitt, Murzyn, Herringer, Williams, Peterson. Nays-Nawrocki MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, STATE OF MINNESOTA RESOLUTION NO. 2016-23 RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF THE DOWNTOWN CBD REVITALIZATION PLAN FOR THE CBD REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF THE HY-VEE TAX INCREMENT FINANCING DISTRICT (A REDEVELOPMENT DISTRICT). EDA Minutes Page 4 Sept. 6, 2016 BE IT RESOLVED, by the Board of Commissioners (the "Board") of the Columbia Heights Economic Development Authority, Minnesota (the "EDA") as follows: WHEREAS, the City Council (the "Council") of the City of Columbia Heights, Minnesota (the "City") established the CBD Redevelopment Project pursuant to Minnesota Statutes, Minnesota Statutes, Sections 469.174 to 469.1794, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and WHEREAS, the EDA is proposing the modification of the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the establishment of the Hy-Vee Tax Increment Financing District, pursuant to, and in accordance with, Minnesota Statutes, Sections 469.174 to 469.1794 and Sections 469.090 through 469.1082, inclusive, as amended; NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1. The EDA hereby requests that the Council call for a public hearing on October 24, 2016 to consider the proposed modification of the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the proposed adoption of the TIF Plan for the Hy-Vee Tax Increment Financing District (collectively, the "Plans") and cause notice of said public hearing to be given as required by law. 2. The EDA directs the Executive Director to transmit copies of the Plans to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Plans are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. 3. The Executive Director of the EDA is hereby directed to submit a copy of the Plans to the Council for its approval. 4. The EDA directs the Executive Director to transmit the Plans to the county and the school district in which the Hy-Vee Tax Increment Financing District is located not later than September 23, 2016. 5. Staff and consultants are authorized and directed to take all steps necessary to prepare the Plans and related documents and to undertake other actions necessary to bring the Plans before the Council. Approved by the Board on September 6, 2016. _______________________________ Chair 2. Scattered Site TIF District-Consider Lot Sale of 4235 Washington St-Resolution 2016-24. Over the years, the Columbia Heights Economic Development Authority (EDA) has acquired property within the City of Columbia Heights for economic development purposes. In 2009, the EDA approved the “Scattered Site Housing Program” in an effort to address foreclosure issues and remediate the emergence of blight within Columbia Height’s neighborhoods. The program was setup to purchase blighted residential properties, demolish the house, and then sell the vacant lots to families seeking new construction of single-family homes. EDA Minutes Page 5 Sept 6, 2016 In 2013, the EDA approved Resolution 2013-07, a resolution approving plan for conveyance of twelve (12) scattered site lots owned by the EDA. The EDA intended to convey these properties to Timbercraft to construct single-family homes, and to that end has also engaged the services of Re/Max Synergy through an Exclusive Right to Sell Listing Contract. The property located at 4235 Washington Street Columbia Heights, MN 55421 is one of those twelve properties intended to be conveyed to Timbercraft once Re/Max Synergy found a Buyer. Also in 2013, the EDA and Timbercraft negotiated purchase prices for all twelve properties. The purchase price negotiated for 4235 Washington Street was $10,000. This property is the last property in the Scattered Site Housing Program to sell and will conclude the Exclusive Right to Sell Listing Contract with RE/Max and Timbercraft. Since a public hearing was held June 3, 2013 for the sale of 4235 Washington Street, the resolution before the EDA tonight is approving the Purchase and Redevelopment Agreement between the EDA and Timbercraft for the property located at 4235 Washington Street. Staff recommends approval of Resolution 2016-24, authorizing approval of the Purchase and Redevelopment Agreement with Timbercraft Enterprises Inc. for the conveyance of 4235 Washington Street, Columbia Heights, MN 55421. Questions/comments from members: Nawrocki asked if this was a buildable lot. He thinks it is pretty narrow. The home should be similar to the others that have been built on 40 foot lots. Hogeboom looked up lot size and told members it was a 50 foot lot width. Motion by Szurek , seconded by Schmitt, to waive the reading of Resolution 2016-24, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Murzyn, to adopt Resolution 2016-24, a resolution approving a Purchase and Redevelopment Agreements with Timbercraft Enterprises Inc. for the conveyance of 4235 Washington Street, Columbia Heights, MN 55421. All ayes. MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016-24 RESOLUTION APPROVING A PURCHASE AND REDEVELOPMENT AGREEMENT (INCLUDING THE SALE OF LAND) BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND TIMBERCRAFT ENTERPRISES, INC. EDA Minutes Page 6 Sept 6, 2016 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 469.1081 ("EDA Act"), and has previously established its Central Business District Redevelopment Project (the “Project”) within the City of Columbia Heights (the “City”) and its City-Wide Scattered Site Tax Increment Financing District (the “TIF District”) within the Project, and has developed program design guidelines in connection with the construction of homes within the TIF District (the “Guidelines”). 1.02. The Authority and TimberCraft Enterprises, Inc. (the “Buyer") have proposed to enter into a Purchase and Redevelopment Agreement (the “Contract”), setting forth the terms and conditions of sale and redevelopment of certain property within the TIF District, currently owned by the Authority, located at 4235 Washington Street NE and described as the North 10 feet of Lot 23, and all of Lot 24, Block 31, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota (the “Property”). 1.03. Pursuant to the Contract, the Buyer will acquire the Property and will construct a single-family home, subject further to the Guidelines and to the City’s zoning and building codes and policies. 1.04. The Authority previously conducted a duly noticed public hearing regarding the sale of the Property to the Buyer, at which all interested persons were given an opportunity to be heard, and approved the conveyance of the Property pursuant to the Guidelines by Resolution No. 2013- 07. 1.05. The Authority finds and determines that conveyance of the Property to the Buyer has no relationship to the City’s comprehensive plan, in that no amendment or modification of the comprehensive plan is required for the conveyance or redevelopment of the Property. The activities of the parties under the Contract implement housing goals established for the TIF District pursuant to the Tax Increment Financing Plan for the TIF District. 1.06. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are consistent with the Guidelines, and are in the public interest and will further the objectives of its general plan of economic development and redevelopment, because they will further the above-stated housing goals. EDA Minutes Page 7 Sept 6, 2016 Section 2. Authority Approval; Further Proceedings. 2.01. The Contract as presented to the Board, including the sale of the Property described therein, is 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 documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, including without limitation the deed, and to carry out, on behalf of the Authority, its obligations thereunder. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 6th day of September, 2016. President ATTEST: Secretary 3. Single Family Lot Sales Program-Approve Sale of 4606 Polk St-Resol. 2016-25 Dahl explained that the program’s lot prices are based upon the Estimated Market Land Value for each individual property. However, the EDA has the right to review and adjust lot prices periodically provided that sufficient evidence supports the lots price reduction. The Estimated Market Land Value for this particular property is $45,000. 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 neighborhood, are generally lower in value compared to other properties throughout the City of Columbia Heights. At the meeting of August 1, 2016, the Columbia Heights Economic Development Authority (EDA) approved the concept approval of Home Detail’s application proposing to purchase the property located at 4606 Polk St. NE for $16,000. The EDA also directed staff to work with Home Detail to determine specific house plans for the Purchase and Redevelopment EDA Minutes Page 8 Sept 6, 2016 Agreement. In accordance to the adopted Single Family Home Lot Sales Program, Home Detail has provided an executed Purchase and Redevelopment Agreement with specific house plans (Attached) and paid an earnest deposit of $2,000 to the EDA. For EDA consideration tonight is the sale approval of 4606 Polk Street NE to Home Detail for the construction of a single family home. If the Purchase and Redevelopment Agreement is not approved by the EDA, the earnest deposit will be returned to Home Detail. If the Purchase Agreement is approved by the EDA, the earnest deposit is non-refundable and will be credited toward the purchase price of the property at closing. At the last EDA meeting, staff indicated that Home Detail has previously constructed a home at 4631 Pierce Street NE. Currently, 4631 Pierce Street has been issued a Temporary Certificate of Occupancy because completion of the Single Family Home has not been completed. Before a Certificate of Occupancy will be issued by the Building Official, erosion controls (ie. landscaping and sodding) must be completed. Staff recommends sale approval of 4606 Polk Street NE to Home Detail contingent on Home Detail obtaining a Certificate of Occupancy for 4631 Pierce Street NE. Questions/comments from members: Szurek asksed what incentive they have to finish the outstanding items at 4631 Pierce Street now that it is occupied. Dahl told members that the contingency he incorporated into this agreement should take care of it. Members were concerned that he has had ample time to finish the outstanding items. Peterson suggested holding off on the sale of the lot at 4606 Polk Street until he completes the Pierce Street one. Herringer is against selling any further properties to this company since they don’t seem to finish the projects in our City and others that he has done work in. Motion by Murzyn, seconded by Herringer, to table this matter until Home Detail Inc. fully completes all outstanding items in order to obtain a Certificate of Occupancy for 4631 Pierce Street. All ayes. MOTIOIN PASSED. (Mr. Magdik arrived at 6:25 pm after this matter was decided. He claimed the site had been sodded in May. He was shown pictures to the contrary, and was told of the Boards decision). EDA Minutes Page 9 Sept 6, 2016 4. First Amendment-ACCAP Purchase Agreement for City Acquisition of 4641-43 Polk St.-Resolution 2016-26 Dahl told members that on June 2015, the Columbia Heights Economic Development Authority (EDA) approved Resolution 2015-11, a resolution approving the acquisition of the Anoka County Community Action Program (ACCAP) property located at 4641 Polk Street NE (Property) for up to $75,000. The EDA and ACCAP entered into a Purchase Agreement dated as of May 26, 2016 contingent on the Property being released from any Minnesota Housing Finance Agency (MHFA) or United States Department of Housing and Urban Development (HUD) obligations. The MHFA committee was presented with ACCAP’s request for the Property to be released from financial obligations for initial approval on July 12, 2016 and final approval on July 19, 2016. At that time, the MHFA tabled the item until further documentation was submitted, such as appraisals, quotes for renovation and a fully executed Purchase Agreement by and between the EDA and ACCAP. On August 23, 2016, after the additional documentation was provided to the MHFA, the MHFA approved the request for partial release of collateral and an amendment of the tax credit extended use agreement for 4641 Polk Street NE, Columbia Heights releasing the Property from MHFA and HUD obligations. ACCAP is ready to move forward with the City’s acquisition of the Property; however the deadline for the closing needs to be extended because of unanticipated delays with releasing the property from financial obligations. The closing for the sale of the Property is proposed to be amended to take place on or before October 31, 2016 instead of the initially scheduled closing date of on or before September 1, 2016. Staff recommends the approval of Resolution 2016-26, a resolution approving the First Amendment of a Purchase Agreement that will extend the closing date of the Property to take place on or before October 31, 2016. A copy of the Agreement was enclosed in the agenda packets for the commission members to review. Questions/comments from members: Nawrocki asked if the plan was to tear the structure down. Dahl said that was the plan, but told members that Home Detail Inc. had approached staff and proposed buying the property from the City after we get title to it. He proposed paying the City $25,000 for the property and then he would convert it from a double home into a single family home. The commission members discussed the proposal and were not interested. They felt the lot was worth more than $25,000 and that a new home would be nicer than a conversion of the existing home. Members are aware they will take a loss on this, but were not willing to subsidize the builder to this extent. EDA Minutes Page 10 Sept. 6, 2016 Motion by Williams, seconded by Szurek, to waive the reading of Resolution 2016-26, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Szurek, to adopt Resolution 2016-26, a resolution approving a First Amendment of a Purchase Agreement between the Columbia Heights Economic Development Authority and Anoka County Community Action Program. All ayes. MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 2016-26 RESOLUTION APPROVING A FIRST AMENDMENT OF A PURCHASE AGREEMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND ANOKA COUNTY COMMUNITY ACTION PROGRAM, INC. 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 currently administers the Downtown CBD Redevelopment Project (the “Project”) within the City of Columbia Heights (the “City”), pursuant to Minnesota Statutes, Sections 469.090 to 469.1082, as amended. 1.02. The Authority and Anoka County Community Action Program, Inc. (the “Seller”) executed a Purchase Agreement, dated as of May 26, 2016 (the “Agreement”), providing for the conveyance by the Seller to the Authority of certain property within the Project and City legally described as follows: nd That part of Lot 23 lying north of the South 20 feet of the SD Lot 23 and Lot 24, Block 1, Sheffields 2 Subdivision, County of Anoka, State of Minnesota (the “Property”). 1.03. The parties have negotiated and propose to execute a First Amendment to the Agreement (the “First Amendment”) to extend the deadline for the conveyance of the Property. Section 2. First Amendment Approved. 2.01. The First Amendment as presented to the Board is 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 First Amendment by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the First Amendment and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority, its obligations thereunder. EDA Minutes Page 11 Sept 6, 2016 2.03. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 6th day of September, 2016. President ATTEST: Secretary The meeting was adjourned at 6:30 pm. Respectfully submitted, Shelley Hanson Secretary