Loading...
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 485385v2 MNI CL205-56 EDA Minutes Page 2 October 3, 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 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. 485385v2 MNI CL205-56 EDA Minutes Page 3 October 3, 2016 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. 485385v2 MNI CL205-56 EDA Minutes Page 4 October 3, 2016 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 485385v2 MNI CL205-56 EDA Minutes Page 5 October 3, 2016 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. 485385v2 MNI CL205-56 EDA Minutes Page 6 October 3, 2016 OTHER BUSINESS There was no other business. The meeting was adjourned at 6:40 pm. Respectfully submitted, Shelley Hanson Secretary