HomeMy WebLinkAboutOct 3 2016 EDA Min
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE MEETING OF
OCTOBER 3, 2016
The meeting was called to order at 6:30 pm by Chair Gary Peterson
Members Present: Donna Schmitt, John Murzyn, Marlaine Szurek,, Bruce Nawrocki , and
Gary Peterson.
Members Absent: Gerry Herringer and Bobby Williams
Staff Present: Walt Fehst, Joseph Hogeboom, Keith Dahl, and Shelley Hanson.
Also present: Martha Ingram and Jim Hoeft-Attornies
PLEDGE OF ALLEGIANCE-
RECITED
CONSENT ITEMS
1.Approve the Minutes from September 6, 2016
–
2.Approve the Financial Report and Payment of Bills for August 2016 on Resolution
2016-27.
Questions by Members:
No questions or comments.
Motion by Szurek, seconded by Schmitt, to waive the reading of Resolution 2016-27 there
being an ample amount of copies available to the public. All ayes. MOTION PASSED.
Motion by Szurek , seconded by Schmitt , to approve the Minutes and Financial Report
and Payment of Bills for August as presented. All ayes. MOTION PASSED.
RESOLUTION NO. 2016-27
A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving
the Financial Statements for Month of August, 2016 and the Payment of the Bills for the Month of
August, 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 August, 2016 has been reviewed by the EDA
Commission; and
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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 3rd day of October, 2016.
Motion by: Szurek
Seconded by: Schmitt
BUSINESS ITEM
1. Single Family Lot Sales Program-Approve Sale of 4606 Polk St-Resol. 2016-25
Dahl reminded members that on September 6, 2016, the final sale approval for 4606 Polk Street
NE to Home Detail was tabled, until which time a Certificate of Occupancy has been issued to
4631 Peirce Street NE. Currently, a Certificate of Occupancy was issued on September 29, 2016
by the Columbia Heights Building Official after Home Detail completed the appropriate erosion
control measures (ie. landscaping and sodding). Since a Certificate of Occupancy has been
issued, the EDA can now consider the final sale approval of 4606 Polk Street NE to Home Detail
for the construction of a single family home.
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.
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Home Detail has offered $16,000 for the property located at 4606 Polk Street NE. 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) for EDA review
and paid an earnest deposit of $2,000 to the EDA.
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 towards the purchase price of the property at
closing.
Martha Ingram reviewed the highlights of the Agreement with the members as follows:
1. She stated that the Agreement must be made with a Licensed Contractor
2. The house must be built by the Licensed Contractor
3. A Certificate of Completion must be issued by the City prior to anyone being allowed to
move into the property
4. Any defaults of the Agreement allows the EDA the right of reverter
5. She acknowledged that the price was lowered to compensate for the soil conditions
Staff recommends sale approval of 4606 Polk Street NE to Home Detail according to the
Agreement as presented..
Questions/comments from members:
Peterson asked if the Certificate of Occupancy has been issued for 4631 Pierce Street which is
why this issue was tabled at the last meeting. Dahl stated that it was issued September 29, 2016.
Nawrocki stated he thinks the City is selling the lots too cheaply.
Schmitt asked if any changes had been made to the Agreement. Ingram responded the only
change was the date of the Agreement.
Motion by Schmitt, seconded by Szurek, to waive the reading of Resolution 2016-25, there being
ample copies available to the public. All ayes. MOTION PASSED.
Motion by Schmitt, seconded by Szurek, to adopt Resolution 2016-25, a resolution approving a
Purchase and Redevelopment Agreements with Home Detail, Inc. for the acquisition of the
property located at 4606 Polk Street NE. All ayes. MOTION PASSED.
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COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2016-25
RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT
AGREEMENT WITH HOME DETAIL, 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 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”).
1.02. The Authority has received an offer from Home Detail, Inc. (the “Buyer”) to
purchase certain property included in the Program (the “Property”), described as attached hereto
as Exhibit A, and the parties have negotiated a Purchase and Redevelopment Agreement (the
“Agreement”) which provides for the conveyance of the Property to the Buyer and the
construction by the Buyer of a single-family home on the Property, all pursuant to the
Guidelines.
1.03. On October 6, 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. On January 4, 2016, the Authority conducted a duly noticed public hearing
regarding the conveyance of the Property pursuant to the Program, at which all interested parties
were given an opportunity to be heard, and approved such conveyance by Resolution No. 2016-02.
1.05. Subsequent to Authority approval of the conveyance of the Property pursuant to the
Program and Guidelines, the Buyer requested and the Authority agreed to a reduction in the
purchase price of the Property, due to higher-than-anticipated Buyer expenses related to the
condition of the soils on the Property.
1.06. The Board has reviewed the Agreement 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 Agreement and Conveyance
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2.01. The Agreement 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 Agreement 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 Agreement as a whole, including without limitation execution
of any documents to which the Authority is a party referenced in or attached to the Agreement, and
any deeds or other documents necessary to convey the Property to the Buyer, all as described in the
Agreement.
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 3rd day of October, 2016.
President
ATTEST:
Secretary
EXHIBIT A
Property
Lot Thirteen (13), except the North Half (N½), the North Thirty Feet (N30’) of Lot Fourteen
(14), Block Two (2), Sheffield’s Second Subdivision, Anoka County, Minnesota.
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OTHER BUSINESS
There was no other business.
The meeting was adjourned at 6:40 pm.
Respectfully submitted,
Shelley Hanson
Secretary