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HomeMy WebLinkAboutMar 6, 2017 minutesECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF MARCH 6, 2017 The meeting was called to order at 6:30 pm by President Szurek Members Present: Schmitt, Williams, Buesgens, Murzyn, Herringer, and Szurek Staff Present: Kelli Bourgeois, Keith Dahl, and Shelley Hanson PLEDGE OF ALLEGIANCE- RECITED CONSENT ITEMS Approve the Minutes from February 6, 2017– Approve the Financial Report and Payment of Bills for January 2017 on Resolution 2017-06. Questions by Members: No questions or comments. Motion by Williams, seconded by Schmitt, to waive the reading of Resolution 2017-06 there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Williams , seconded by Schmitt, to approve the Minutes of February 6, 2017, and the Financial Report and Payment of Bills for January, 2017 as presented. All ayes. MOTION PASSED. RESOLUTION NO. 2017-06 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for the Month of January, 2017 and the Payment of the Bills for the Month of January, 2017. 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 EDA Minutes Page 2 February 6, 2017 WHEREAS, the financial statements for the month of January, 2017 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 6th day of March, 2017. Motion by: Seconded by: BUSINESS ITEM 1. Single Family Home Lot Sales Program-Concept Application Approval for 4647 Polk Street Dahl told members that The Columbia Heights Economic Development Authority (the “EDA”) has received a completed concept application from Tollberg Homes offering $25,000 for the purchase of the property located at 4647 Polk Street NE (the “Property”). The Property is part of the Single Family Home Lot Sales Program, which was established by the EDA in 2015 to stabilize and increase property values in the Heritage Heights Neighborhood. Dahl reminded members this is the parcel we just purchased back from the Pepples. 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. EDA Minutes Page 3 March 6, 2017 The 2017 Estimated Market Land Value for this particular property is $51,300. However, in speaking with various home builders and realtors, staff received comments that the lots located in the Heritage Heights neighborhood, are generally lower in value than other properties throughout the City. Tollberg Home’s offer of $25,000 is around what the EDA can expect to sell this property for. Dahl told members the lot was sold for $7,500 a few years back to the Pepples. Since land prices have increased since that time, this offer is more in line with today’s market. The new price will cover any legal fees we incurred during the reverter process. Along with a completed concept application, Tollberg Homes has submitted a written letter of intent and an example house plan. The example house plan is only a representation of what Tollberg Homes intends to construct on the Property. For consideration tonight is the concept approval of the submitted application by Tollberg Homes. If the EDA approves the concept approval, staff will work with Tollberg Homes to determine specific house plans and to prepare a Purchase and Redevelopment Agreement for the next EDA meeting on April 3, 2017. Staff recommends approval of the concept application submitted by Tollberg Homes as presented. Questions by members: Herringer asked if there have been any problems with Tollberg Homes during the construction of the others they have done in that area. Dahl said there haven’t been any problems. He went on to explain that the language in the Purchase and Redevelopment Agreement has been changed and the lot is being sold “as is”, and the deposit is non-refundable regardless if there are any problems with soil conditions. Szurek asked what the proposed home will sell for. Dahl said that Tollberg estimates it will sell for $230,000. Dahl said the four he has built thus far have sold for $190,000-$210,000. Schmitt noticed the example plan only had two bedrooms and she wanted to make sure the EDA wasn’t approving that plan at this meeting. Dahl told her that was correct, and that the actual plan will be considered at the next meeting. Herringer asked how we make sure these properties remain owner occupied which is a requirement of the program. Dahl said that staff has made special notations in permit works which flags the property for 10 years to make sure that no one can come in to obtain a rental license. EDA Minutes Page 4 March 6, 2017 Motion by Buesgens, seconded by Williams, to approve the concept application submitted by Tollberg Homes for the property located at 4647 Polk Street NE, Columbia Heights, MN 55421. All ayes. MOTION PASSED. Motion by Williams, seconded by Schmitt, to authorize staff to work with Tollberg Homes to determine specific house plans for the construction of a single-family home and to prepare a Purchase and Redevelopment Agreement for consideration at the next EDA meeting on April 3, 2017. All ayes. MOTION PASSED. OTHER BUSINESS: MEMBERSHIP OF THE EDA Dahl reminded members that on February 6, 2017, the Columbia Heights Economic Development Authority (EDA) discussed information about membership requirements, vacancies, appointments, and term lengths for EDA commissioners. Legal counsel was present to address questions and/ or concerns EDA commissioners had pertaining to requirements set forth by Minnesota State Statutes, Sections 469.090 to 469.1081 (EDA Act). One question raised by EDA Vice President, Schmitt was in regards to the number of commissioners constituting the EDA. Legal counsel stated that the maximum number of EDA commissioners may not exceed a nine-member authority; however, this is incorrect as the EDA Act states an EDA shall consist of a three, five, or seven-member authority. Thus, Dahl told members that the EDA may not increase the number of commissioners constituting it. If the EDA still desires to make any structural change to its current membership, it is not necessary to make any formal changes to either the enabling resolution or the bylaws of the EDA; rather changes may simply be made by appointments of different commissioners when terms expire. The following list is for reference to when terms expire for EDA commissioners: 2017 EDA Commissioners Term Ends Herringer, Gerry January 2, 2018 Szurek, Marlaine January 2, 2018 Murzyn Jr., John January 7, 2019 Schmitt, Donna January 7, 2019 Buesgens, Connie January 4, 2021 Williams, Bobby January 4, 2021 Therefore, Staff doesn’t recommend any changes to be made at this time. EDA Minutes Page 5 March 6, 2017 SINGLE FAMILY HOMES ALONG CENTRAL AVE-DISCUSSION On February 6, 2017, the Columbia Heights Economic Development Authority (EDA) reviewed accomplished projects in 2016, but also discussed several projects, programs, and objectives commissioners desired to see initiated and/ or completed in 2017. One of the proposed objectives mentioned by EDA commissioner, Buesgens and EDA Treasurer, Williams was related to the property acquisition of legal non-conforming, single-family homes and/ or properties that have the potential to become illegal non-conforming, single-family homes along Central Avenue. A non-conforming, single-family home is a residential dwelling that is located within a commercial zoning district that has been grandfathered in to the commercial zoning designation. Whereas, an illegal non-conforming, single-family home is a residential dwelling that converted into a commercial use before it converted back into a residential use. Previously, staff mapped out twelve (12) properties in the Central Business District that were either a non-conforming, single-family home or a property that had potential to become an illegal non-conforming, single-family home. However, the EDA requested more information about all instances along Central Avenue. Dahl provided members with a spreadsheet that identified all twenty-two (22) instances where single-family homes were located in commercial zoning districts along Central Avenue. These properties where identified by inventorying Central Avenue, as well as reviewing their 2016 tax classification. There were fourteen (14) instances of a non-conforming, single-family home and nine (9) instances of a property that has potential to become an illegal non-conforming, single-family home. Since the existing homes have a lower tax base than if they were commercial sites, the EDA may want to consider purchasing these as they become available. Staff has determined that if the EDA purchased every property at the 2017 estimated market value, the EDA could expect to pay around 2.8 million, which doesn’t include any professional service fees. Overall, this objective will take several years to accomplish, but staff will continue to keep the EDA apprised of any properties that become available from the list. Questions/comments from members: Herringer asked if we could attempt to enter into 1st Right of Refusal Contracts with those owners willing to do so. He said this may help owners decide they’d like to sell if they know there is an interested party, and it would help prevent us missing any properties that go on the market. EDA Minutes Page 6 March 6, 2017 Buesgens asked what the tax difference is between residential and commercial. Dahl said he would have to check with Anoka County to see what that amount is. Buesgens then asked if we could go after Real Estate agents for falsely advertising property . She also suggested that it might be possible for us to purchase the houses, then to re-sell them so they can be moved off site. Dahl told members if they are interested in pursuing this idea that they will have to look at sources of revenue and to budget an amount every year in order to purchase these properties. He stated that we wouldn’t be able to buy them all at once, and they won’t become available all at once. It is something that staff will have to monitor. There was a brief discussion about the re-zoning of these properties to commercial and whether we should re-zone them back to residential or create an ordinance preventing them from being used as commercial. Dahl told members the re-zoning was done to phase in these properties to commercial use over time as it was the long range plan the City wanted to happen. The consensus of the board was to look for funding and move ahead with trying to obtain these properties if, and when, we are able to do so. UPDATES Szurek asked if Hy-Vee was still on schedule to begin construction soon. Dahl reported that he spoke with representatives from Hy-Vee this week and they plan on starting remediation of the old Rainbow Store in late spring or early summer. They will also start construction of the new convenience store/gas station on 47th and Central at the same time. Dahl said they will put signs up to announce “coming soon”. They expect to open mid- 2018. The meeting was adjourned at 7:10 pm. Respectfully submitted, Shelley Hanson Secretary