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HomeMy WebLinkAboutJuly 10, 2017 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE SPECIAL MEETING OF JULY 10, 2017 The meeting was called to order at 6:30 pm by Vice President Donna Schmitt. Members Present: Williams, Murzyn, Herringer, Schmitt, Novitsky, and Buesgens Members Absent: Szurek Staff Present: Walt Fehst, Keith Dahl and Jodi Griffin (acting Assistant Secretary) Also present, James Lenhoff, representative with Ehlers & Associates and John Rockwell, Broker with Re/MAX Synergy. PLEDGE OF ALLEGIANCE- RECITED Approval to amend the Agenda to include an additional item #8, which is consideration of the 47th & Grand TIF District. Motion by Murzyn, seconded by Buesgens, to amend the Agenda to include the additional item, which is consideration of the 47th & Grand TIF District. Roll call: All Ayes. MOTION PASSED. CONSENT AGENDA 1. Approve minutes of June 5, 2017 and June 12, 2017 2. Approve Financial Report and Payment of Bills for May, 2017 – Resolution 2017-16 Questions from members: Herringer and Schmitt asked for clarification of what the item on Page 26 made to Aisling Fitness was for. Dahl stated he believed it was to refund escrow for the Planet Fitness building, but he will make note to check on it and email members with confirmation or an explanation. Motion by Buesgens , seconded by Novitsky , to approve the Minutes of June 5, 2017 and June 12, 2017, and the Financial Report and Payment of Bills for May, 2017 as presented. All ayes. MOTION PASSED. EDA Minutes Page 2 July 10, 2017 RESOLUTIONNO.2017-16 AResolution of theEconomic Development Authorityof Columbia Heights, Minnesota,Approving the Financial Statements for Month ofMay2017and the Payment of the Bills for the Month of May2017. 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 resolutionand enter the resolution in its records; and WHEREAS,the financial statement for themonthofMay2017has 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 RESOLVEDby 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 RESOLVEDthe financial statements are acknowledged and received and the check historyas presented in writing is approved for payment out of proper funds; and BE IT FURTHER RESOLVEDthis resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. ORDER OFECONOMIC DEVELOPMENT AUTHORITY Passed this _________ dayof ______________________, 2017 Offered by: Seconded by: Roll Call: VicePresident Attest: Secretary EDA Minutes Page 3 July 10, 2017 PUBLIC HEARING 1. Single Family Home Program - Concept Application Approval of 4647 Tyler Street NE Dahl explained that on June 5, 2017, the Columbia Heights Economic Development Authority (the “EDA”) approved the concept application submitted by Tollberg Homes offering $22,500 for the purchase of the property located at 4647 Tyler Street NE (the “Subject Property”). The Subject Property is approximately 0.17 acres, and 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. The 2017 Estimated Market Land Value for this particular property is $38,600. 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. Furthermore, the Public Works Department has confirmed that there was a water main break at the Subject Property, which resulted in the sewer and water lines being disconnected at the main. Thus, the offer from Tollberg Homes of $22,500 is around what the EDA can expect to sell the Subject Property for. For the EDA’s consideration tonight is the final sale approval of the Subject Property. Attached for review and consideration is the Purchase and Redevelopment Agreement. Specific house plans may be found in Exhibit B of the Purchase and Redevelopment Agreement. The proposed house plan meets the building requirements set forth by the Single Family Home Lot Sales Program Guidelines. Staff has received the earnest money in the amount of $2,000. If the EDA approves the final sale tonight, the earnest money will become non-refundable. If the EDA denies the final sale approval, staff will reimburse the earnest money to Tollberg Homes. Questions by Members: Schmitt asked to clarify that item #9 on Page 2 of the Purchase and Redevelopment Agreement referring to Sewer and Water conforms to what Dahl stated, in that the City is not warrantying the conditions. Dahl confirmed that was correct and that the lot is being sold as is. Public Hearing Opened. No one wished to speak on this matter. Public Hearing Closed. Motion by Murzyn , seconded by Novitsky, to waive the reading of Resolution 2017-17, there being ample copies available to the public. Roll call: All Ayes. MOTION PASSED. Motion by Buesgens , seconded by Murzyn , to adopt Resolution 2017-17, Resolution Approving the Purchase and Redevelopment Agreement with Tollberg Homes, LLC for the acquisition of 4647 Tyler Street NE, Columbia Heights, MN 55421. Roll call: All Ayes MOTION PASSED. EDA Minutes Page 4 July 10, 2017 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO.2017-17 RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH TOLLBERG HOMES, LLC. BE IT RESOLVED BY theBoard 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”)providing for the conveyance of certain Authority-owned property in the City of Columbia Heights (the “City”), and has adopted guidelines in connection with the Program (the “Guidelines”). 1.02.TheAuthority has received an offer from Tollberg Homes, LLC (the “Buyer”) to purchase certain propertyincluded in the Program (the “Property”), described as attached hereto as Exhibit and located at 4647 Tyler Street in the City, and the parties have negotiateda Purchase and Redevelopment Agreement (the “Agreement”) which providesfor the conveyance of the Property to the Buyer and the construction by the Buyer ofasingle-family home on the Property, all pursuant to the Guidelines. 1.03.On October 21, 2015, the Planning Commission of the City reviewed the proposed Program and found that theconveyanceof property pursuant to the Programis consistent with the City’s comprehensive plan. 1.04.Onthe date hereof, the Authority conducted a duly noticed public hearing regarding the conveyance of the Property to the Buyer, at which all interested parties were given an opportunity to be heard. 1.05.The Board has reviewed theAgreementin the form on file at the office of the Executive Directorand finds that the execution thereof and performance of theAuthority's obligations thereunder, including the conveyance of the Property to the Buyer,areconsistent with the Guidelines andin the best interest of the City and its residents. Section 2.Approval and Authorization of Agreement and Conveyance 2.01.TheAgreement 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 theAgreementby 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 theAgreementas a whole, including without limitation execution ofany documents to which the Authority is a party referenced in or attached to the Agreement, and any deedsor other documents necessary to conveytheProperty tothe 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 this10thday ofJuly, 2017. EDA Minutes Page 5 July 10, 2017 EXHIBIT A Property Lot Twenty-six (26) except the South 20 feet of said Lot Twenty-six (26) and all of Lot Twenty- seven (27), in Block Two (2) of Sheffield’s Second SubdivisionAnoka Co. Minn. according to the plat thereof on file in the Office of the Register of Deeds in and for said County and State. BUSINESS ITEMS: 1. Exclusive Right for Representation Agreement On June 5, 2017, the Columbia Heights Economic Development Authority (the “EDA”) moved to engage the services of Pete T. Heryla & John M. Rockwell with RE/MAX Synergy to represent the EDA in acquisition of nonconforming properties as they may become available within the City of Columbia Heights (the “City”), and directed staff to review the Buyer Representation Contract (the “Contract”) submitted by RE/MAX Synergy. Pursuant to the Federal Relocation Act and the Minnesota Version of the Uniform Relocation Act, government agencies are responsible for relocation fees if they are proactive in acquisition of industrial, commercial or residential property. Relocation fees may be waived in certain circumstances. Owner occupants may waive their right to relocation fees if the owner is proactive by reaching out to the government agency or the owner lists their property on the open market, but tenant occupants may not waive their right to relocation fees. Thus, staff requested that RE/MAX Synergy insert the following language into the Contract, line 117, Other: Notwithstanding any provision apparently to the contrary in this Agreement, the parties agree that Broker shall not make any inquiries or other proactive contact as a representative of Buyer, to owners of properties in the City of Columbia Heights who are not actively listing their property. For purposes of this Agreement, “inquiries or other proactive contact” means unsolicited letters or other written or oral communications directed to property owners to gauge their interest in selling their property or to inform such owners that Buyer is a potential purchaser of their property. RE/MAX Synergy has agreed to insert the aforementioned language into Contract. If the EDA Commission Members agree to the Contract as presented, approval of Resolution 2017-18 will effectively enter the EDA into a contract with RE/MAX Synergy; authorize staff to take all actions necessary to perform the obligations of the EDA in said contract; and authorize Re/MAX Synergy to respond to active listings within the City and make fair market value offers of up to $200,000 on the behalf of the EDA. Questions by Members: Buesgens asked if Dahl knew what the average value of the properties were. Dahl stated he was uncertain what the average was. Herringer inquired if it was likely under $200,000. Dahl stated he believed that was correct. EDA Minutes Page 6 July 10, 2017 Herringer inquired about line 15 in the contract where it states “Buyer shall cooperate with Broker in finding a property to purchase”, and wanted to know if that could put us in a position of getting involved in relocation assistance if we are picking out properties. Dahl stated that from what the attorney tells us, because we will be working with our broker, it does not put us in a position of getting involved in relocation assistance. The broker cannot actively reach out to an individual to let them know we are interested in the property. Dahl stated we would have to be “reactionary” versus proactive in our role. Fehst stated this was a concern for him as well, and inquired as to what attorney reviewed the document. Dahl stated the document was reviewed by Attorney, Martha Ingram. Fehst emphasized that was one thing we do not want to do and inquired if there was a way to reword that somehow to make it clear that the initial contact is something that comes from the listing or somehow. Dahl inquired if Fehst was suggesting we omit that line. Herringer stated his concern is that we do not want to look like we are hustling properties and should keep an “arms length” as best we can. Schmitt stated her interpretation was that it was just referring to the fact that they can look on the MLS listing because they are going to be searching on that listing anyway. Dahl introduced John Rockwell, representative with Re/MAX Synergy. Rockwell referenced Page 4, lines 117-123, which states the Broker cannot make any inquiries or do anything of that nature. Rockwell stated the contract that was drafted is a State approved form and they did not want to draft a form and start changing the language of the existing form, as once you do this, it starts putting up red flags. Rockwell stated when he first received the revisions back from Dahl and interpreted what the City wanted in the paragraph, it was their interpretation that this paragraph supercedes the other clause; in that they cannot send out any solicitations. All they can essentially do is monitor the marketplace and provide that information to Dahl. Rockwell stated while this can be a disadvantage to the City, at the same time, he understands their need to protect themselves. Buesgens asked if ZAMA covers properties that are For Sale by Owner. Rockwell stated this was a gray area. Buesgens inquired if Rockwell thought anyone would list their home out on Craig’s list. Rockwell stated it depends on the individual. Herringer thought , in his opinion, that might be the way they would try to sell these homes. Rockwell cautioned the fact that with the $200,000 price tag, sellers are going to look at the Central Avenue Corridor and try to put a premium on it and that will be dictated by what the Fair Market Value is. A lot of the homeowners are going to think that because it is on Central Avenue and located in a commercial district that their home is probably worth more than it really is, and that is something they will have to monitor as well. Dahl also mentioned that attorney Ingram’s counter-part, a Real Estate attorney, reviewed the contract specifically for the Federal Relocation Act, and he was comfortable with the verbage with the paragraph that was added at the end. Motion by Williams, seconded by Buesgens, to waive the reading of Resolution 2017-18, there being ample copies available to the public. Roll call: All Ayes. MOTION PASSED. EDA Minutes Page 7 July 10, 2017 Motion by Williams , seconded by Novitsky, to adopt Resolution 2017-18, Resolution Approving the Buyer representation contract with Re/Max Synergy. Roll call: All Ayes. MOTION PASSED. COLUMBIA HEIGHTSECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO.2017-18 RESOLUTIONAPPROVINGBUYER REPRESENTATION CONTRACT WITH RE/MAX SYNERGY Section 1.Recitals. 1.01.TheBoard ofCommissioners(“Board”)of theColumbia HeightsEconomic Development Authority (the “Authority”)is authorized under Minnesota Statutes, Sections 469.090 to 469.1081 (the “EDA Act”) to purchase and convey property within its area of operation for economic development purposes. 1.02.The Board has determined that it is necessary and desirable to retain the services of a real estate broker for purposes of monitoring properties within the City of Columbia Heights (the “City”) that are nonconforming underthecurrent City zoningcodeand that may become available for sale from time to time, in orderto potentially make offers for such property based on then- current market values. 1.03.The Board has received proposals from real estate brokers, and has determined to enter into the Buyer’s Representation Contract (the “Broker’sAgreement”) proposed by Re/Max Synergy (the “Broker”) in substantially the form presented to the Board. 1.04.The Boardexpressly finds and determines that authorizing the Broker to respond to active listings and develop offerspursuant to the Broker’s Agreementdoes not imply any exercise any power of eminent domain that may be available to the Authority pursuant to the EDA Act, and that the EDA will notexercise such power in pursuing the acquisition of any nonconforming property under the Broker’s Agreement. Section 2.Approval ofBroker’s Agreement. 2.01.TheAuthorityhereby approves theBroker’s Agreement in substantially the form presented, subject to modifications that do not alter the substance of the transaction and that are approved by thePresident and Executive Director, provided that execution of the Broker’s 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 theBroker’s Agreementas a whole, including without limitation execution ofany documents to which the Authority is a party referenced in or attached to the Broker’s Agreement. 2.03.The Board hereby authorizes the Broker to respond toactive listings within the City, and to make fair market value offers of up to $200,000 on the Authority’s behalf without prior formal approvalof such offersby the Board, subject to ratification of such offers by the Authority if accepted by the seller of the property.  Adopted by theColumbia HeightsEconomic Development Authoritythis10thofJuly, 2017. EDA Minutes Page 8 July 10, 2017 NEW ITEMS 1. Consideration of 47th and Grand TIF District On May 22, 2017, after the request of the Columbia Heights Economic Development Authority (the “EDA”), the City of Columbia Heights (the “City”) City Council called for a public hearing in regards to the establishment of the 47th and Grand Tax Increment Financing District (collectively referred as the “TIF Plan”). Before or at the time of the public hearing and pursuant to State Statue 469.175, Subd 3, the City is required to make certain findings of fact related to the TIF Plan. Since the EDA is the authority authorized within the City to exercise TIF powers, the EDA is the authority required to make said findings of fact. Thus, the consideration of the TIF Plan by the EDA is required prior to the public hearing scheduled for tonight at the City Council meeting. Please note: the TIF Plan is merely a planning document that reflects the full length of the proposed TIF district; it in no way constitutes the term length or dollar amount of the proposed TIF district. The term length and dollar amount would be part of a separate document, the Contract for Private Redevelopment (the “Agreement”). And, if the City Council approves the TIF Plan at the public hearing, that Agreement would be considered by the EDA at the next regularly scheduled meeting on August 7, 2017. Dominium has requested TIF assistance to offset qualified costs related to the development of the proposed affordable multi-family, workforce housing project (the “Proposed Development”) on the corner of 47th and Grand Avenue located at 1069 Grandview Court NE and 4729 Grand Avenue NE, Columbia Heights (the “Subject Property”). The Proposed Development would consist of an estimated 173 units, all of which would be affordable to households with incomes at or below sixty percent (60%) of the area median income (the “AMI”). The AMI is the midpoint of a region’s income distribution; half of the households in a region earn more and half earn less. The US Department of Housing and Urban Development calculates these different levels of AMI for regions across the country by household size. In 2017, the Twin Cities 60% AMI has been defined as follows:             The Subject Property is comprised of 4.93 acres of vacant, undeveloped land zoned as Transit Oriented Mixed-Use Development. The City has identified three mixed-use districts in an effort to differentiate the three types of development: Transit Oriented Development, Community Center Development, and Transitional Development. Transit Oriented Mixed-Use Development is defined as an area within the City that promotes interaction between medium to high density housing; transit facilities; and neighborhood services, such as restaurants, retail and office space. The main focus of this district is to accommodate affordable housing for the workforce of the community, but also to ensure a pedestrian friendly environment that increases non-motorized modes of transportation. On July 5, 2017, the Planning and Zoning Commission in and for the City (the P&Z) met and reviewed the proposed TIF Plan to determine if it conformed to the general plans for the development and redevelopment of the City. The P&Z unanimously determined that the proposed TIF Plan aligned with numerous goals and policies adopted by the City in the Comprehensive Plan, many of which conform to the development requirements of the Transit Oriented Mixed-Use Development District. Originally, Dominium requested TIF assistance in the amount of $2.977 million over the course of 20 years. Neither City staff nor Ehlers, the financial consultant of the City, determined that a 20 year TIF district period would be necessary for the Proposed Development to become financially feasible or in the best interest of the City. Based on the EDA Minutes Page 9 July 10, 2017 analyses conducted, City staff, Ehlers and Dominium are in consensus that TIF assistance in the amount of $1,817,707 over 12 years accounting for a 4% inflation rate would be substantially sufficient for the Proposed Development to proceed. Before the EDA tonight is consideration of three (3) resolutions; Resolution 2017-19, a resolution de-certifying parcels of land incorporated in the previous K-Mart/Central Avenue TIF District; Resolution 2017-20, a resolution adopting the TIF Plan for the 47th and Grand TIF District; and Resolution 2017-21, a resolution authorizing an interfund loan for the EDA to be reimbursed for qualified costs from the TIF District. Dahl introduced James Lenhoff, consultant with Ehlers, who explained that the actions before the EDA tonight are not approving any sort of obligation associated with the project itself. It is for the creation of the TIF Plan and the TIF District itself so the tool is available. It is the private redevelopment, tentatively scheduled for the EDA meeting in August, where it actually lays out what the assistance of the project will be. Lenhoff explained the proposed TIF District will have 3 parcels that are located inside a different TIF District today. There has been no activity on those parcels so they can be removed out of that district, but in order to do that, and create a new district, the EDA must pass a Resolution to decertify those parcels out of that district as a parcel(s) cannot be in two districts at once. This has been reviewed by the City Attorney and it is recommended the Resolution be approved. Lenhoff explained the second Resolution is the proposal to adopt a modification to the development program for the Downtown Central Business Redevelopment District to establish the 47th and Grand Tax Increment Finance District. It is this action that actually creates and adopts the TIF Plan and TIF District itself, but is not to be confused with the Re-development Contract with Dominium. This particular action would create a new housing TIF District for up to the statutory maximum of 26 years. At least 40 percent of the units must be affordable to households earning 60 percent of AMI or less. This means in 2017 rents for a one bedroom cannot exceed about $1017 per month, two bedroom $1220 per month and rents for a three bedroom about $1400.00 per month which is updated yearly by HUD. The TIF Plan also sets out a maximum project budget which provides the flexibility for the City in how the funds in TIF District can be used and does not correspond to the dollars that may go to the project itself. It is a planning document, not the assistance document. Related to the assistance document, that will come forward in August in the Development Agreement, a key part to that is the proforma analysis and the key aspect there is that they are passing the “but for” test. If “but for” this assistance, the project would not be able to move forward. Dominium was originally requesting approximately 20 years of assistance right around $2,000,000. Based on our review and detailed analysis, we came to the conclusion that no more than 12 years of assistance and about 1.482 million would be appropriate for the project and Dominium is in agreement with that number. The Development Agreement next month will also discuss that it is a pay as you go and the money is not provided up front to the project. It is only received after the project is completed to City expectations, to the Planning documents that are approved, and they have started paying property taxes, it is done in incremental fashion over the next 12 years. That will come forward in August and all business provisions that go along with that will be reviewed at that time. The Planning and Zoning Commission reviewed the TIF Plan proposal at their July 5th, 2017 meeting and found it to be in conformance with the City’s Comprehensive Plan. The City has completed all required notifications including to the School District and Anoka County and have issued the proper Public Hearing Notices for the City Council meeting tonight. The proposal and documentation has been reviewed by the City Attorney and has been found to be in conformance with State Statutes. It is ultimately subject to a Public Hearing with City Council tonight even after taken here. EDA Minutes Page 10 July 10, 2017 The final Resolution authorizes an inter-fund loan for advance in some of the costs associated with the TIF District. The Developer ultimately is expected to cover all of the costs the City incurs to create this TIF District and they have deposited an amount with the City to draw from to cover those costs. It is always recommended the City pass this inter-fund loan resolution so that if there is an additional cost that hasn’t been reimbursed yet or comes at a later date, it allows the city to log that cost and ultimately get reimbursed through the TIF District itself. This makes sure the City does not incur costs and allows the inter-fund resolution of up to $25,000 which is typical. Questions by Members: Herringer questioned if Dominion does not move forward with this project, is the work that has been done to create this TIF District, only for this project. Lenhoff explained if for some reason Dominium decided not to move forward, for whatever reason, the work is not totally lost. It could be used for someone else who wanted to develop the site as a “housing” project with that minimum level of affordability, or it could be modified for another potential housing project. However, if a Developer came in with a Commercial or Industrial project, this type of district would not work. Lenhoff further explained that essentially, Dominium has 4 years to get a project started. If it is not started within that timeframe then it would be decertified. Schmitt stated to members that Lenhoff would be present and available for questions at the City Council meeting following the EDA meeting. Dahl also wanted to explain that the $1,817,707 dollars over the next 12 years accounts for a 4 percent inflation rate, but since that can’t be considered, the amount will be substantially smaller in the EDA Contract at $1,482,000. Lenhoff clarified the plan assumes there will be inflation, but for the Development Agreement, inflation is generally not included, as it provides more flexibility to the City not to include it. Motion by Buesgens , seconded by Murzyn, to waive the reading of Resolution 2017-19, there being ample copies available to the public. Roll call: All Ayes. MOTION PASSED. Motion by Buesgens , seconded by Herringer , to adopt Resolution 2017-19, Resolution Approving the elimination of parcels from the K-Mart/ Central Avenue Tax Increment Financing District (County Identifier T4) within the Central Business District Redevelopment Project in the City of Columbia Heights. Roll call: All Ayes MOTION PASSED. EDA Minutes Page 11 July 10, 2017 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS ANOKACOUNTY STATE OFMINNESOTA RESOLUTION NO.2017-19 RESOLUTION APPROVING THE ELIMINATION OF PARCELS FROMTHE K-MART/CENTRAL AVENUETAX INCREMENT FINANCING DISTRICT (COUNTYIDENTIFIERT4)WITHINTHE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECTINTHECITY OFCOLUMBIA HEIGHTS. WHEREAS, onSeptember22,2003, the City ofColumbia Heights(the "City") created its K-Mart/Central AvenueTax Increment Financing District(CountyIdentifier T4)(the"TIFDistrict") within itsCentral Business District Redevelopment Project(the "Project")by approval of a tax increment financing plan (the "TIF Plan) for the TIF District; and WHEREAS, theColumbia HeightsEconomic Development Authority (the "EDA") is the administrative authority for the TIF District; and WHEREAS, the followingproperties, by property identification number, were included in the TIF District: 25-30-24-32-0064 25-30-24-32-0065 25-30-24-32-0072 WHEREAS, theEDA desires by this resolution toamend the TIF Plan to removetheabove- described parcels fromthe TIF District,thereby reducing the sizethereof; and WHEREAS, the total current net tax capacity of the parcels to be eliminated from the TIF District equals orexceeds the net tax capacityof those parcels in theTIF District’s original net tax capacityand, therefore this amendment to the TIF Plan is accomplished pursuant toMinnesota Statutes, Section 469.175,Subdivision4, clause (e)(2)(A). NOW THEREFORE,BE IT RESOLVED that theTIF Plan forthe TIF Districtis hereby amended to remove the described parcels and the Executive Director is authorized and directed to notify the County Auditorthereofpursuant toMinnesota Statutes, Section 469.175, Subdivision4, clause (e). ADOPTED:July 10, 2017 __________________________________ ______________________________ ____ VicePresident Secretary (Seal) EDA Minutes Page 12 July 10, 2017 Motion by Buesgens , seconded by Murzyn, to waive the reading of Resolution 2017-20, there being ample copies available to the public. Roll call: All Ayes. MOTION PASSED. Motion by Buesgens , seconded by Novitsky, to adopt Resolution 2017-20, a Resolution adopting the modification to the Development Program for the Downtown Central Business Redevelopment Project, establishing the 47th and Grand Tax Increment Financing District therein, and adopting a Tax Increment Financing Plan therefore. Roll call: All Ayes MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS ANOKA COUNTY STATE OF MINNESOTA RESOLUTION NO.2017-20 RESOLUTION ADOPTING AMODIFICATION TO THE DEVELOPMENT PROGRAM FOR THE DOWNTOWN CENTRAL BUSINESS REDEVELOPMENT PROJECT, ESTABLISHING THE 47TH AND GRAND TAX INCREMENT FINANCING DISTRICT THEREIN, AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. WHEREAS, it has been proposedby the Board of Commissioners (the "Board") of the Columbia Heights Economic Development Authority (the "EDA") and the City of Columbia Heights (the "City") that the EDA adopt a Modification to the Development Program (the "Development Program Modification") for the Downtown Central Business Redevelopment Project (the "Project "),establish the 47th and Grand Tax Increment Financing District (the "District")within the Projectand adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1081, and Sections 469.174 to 469.1794, inclusive, as amended (the "Act"), all as reflected in the Program and Plan and presented for the Board's consideration; and WHEREAS, the EDA has investigated the facts relating to the Program and Plan and has caused the Program and Plan to be prepared; and WHEREAS, the EDA has performed all actions required by law to be performed prior to the adoption of the Program and Plan. The EDA has also requested the City Planning Commission to provide for review of and written comment on Program and Plan and thatthe Council schedule a public hearing on the Program and Plan upon published notice as required by law. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: 1. The EDA hereby finds that the District is in the public interest and is a "housingdistrict" under Section 469.174, Subd. 11of the Act, and finds that the adoption of the proposed Program and Plan conformsin all respects to the requirements of the Act and will help fulfill a need to develop an area of the State of Minnesota for affordable and high quality housing. 2. The EDA further finds that the Program and Plan will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the Project Area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. EDA Minutes Page 13 July 10, 2017 3. The boundaries of the Project are not being expanded. 4. The reasons and facts supporting the findings in this resolution are described in the Program and Plan. 5. The EDAelects to calculate fiscal disparities for the District in accordance with Section 469.177, Subd. 3, clause bof the Act, which means the fiscal disparities contributionwillbe taken from inside the District. It is not anticipated that the District willcontain commercial/industrial property. As a result, there should be no impacton the Districtdue to the fiscal disparities provision. 6. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Program and Plan,as presented to the EDA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the Executive Director of the EDA. 7. Upon approval of the Program and Plan by the City Council,EDA staff,advisors and legal counsel are authorized and directed to proceed with the implementation of the Program and Plan and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessaryfor this purpose. Approval of the Program and Plan does not constitute approval of any project or adevelopmentagreement with any developer. 8. Upon approval of the Program and Plan by the City Council, the Executive Director of the EDA is authorized and directed to forward a copy of the Program and Plan to the Minnesota Department of Revenue and the Office of the State Auditor pursuant toSection469.175, Subd. 4a of the Act. 9. The Executive Director of the EDA is authorized and directed to forward a copyof the Program and Plan to the Anoka Auditor and request that the Auditor certify the original tax capacity of the District as described in the Program and Plan, all in accordance withSection469.177of the Act. Approved by the Board of Commissioners ofthe Columbia Heights Economic Development Authority on July10, 2017. _______________________________________ VicePresident ATTEST: __________________________ Secretary Motion by Buesgens, seconded by Herringer, to waive the reading of Resolution 2017-21, there being ample copies available to the public. Roll call: All Ayes. MOTION PASSED. Motion by Buesgens, seconded by Novitsky, to adopt Resolution 2017-21, a Resolution authorizing an interfund loan for advance of certain costs in connection with the 47th and Grand Tax Increment Financing District. Roll call: All Ayes MOTION PASSED. EDA Minutes Page 14 July 10, 2017 COLUMBIA HEIGHTSECONOMIC DEVELOPMENT AUTHORITY ANOKA COUNTY STATE OF MINNESOTA RESOLUTION NO.2017-21 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE47thAND GRANDTAX INCREMENT FINANCING DISTRICT. BE IT RESOLVED by theBoard of Commissioners(the "Board") of the Columbia Heights Economic Development Authority(the "Authority"), as follows: Section 1. Background. 1.01. The Cityand Authority haveheretofore approved the establishment of the47thand Grand Tax Increment Financing District (the "TIF District") within the Downtown Central Business Redevelopment Project (the "Project"), and haveadopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “Act”).The Authority administers the TIF District. 1.02. TheAuthorityhas determined to pay for certain costs identified in the TIF Plan consisting of land/building acquisition, site improvements/preparation, public utilities, other qualifying improvements, interest and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from Cityor Authorityfunds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178,Subd. 7, theAuthorityis authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. TheAuthorityintends to reimburse itself forthe Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. 2.01. TheAuthorityherebyauthorizes the advance of up to $25,000from theEconomic Developmentfund or so much thereof as may be paid as Qualified Costs. TheAuthorityshall reimburse itself for such advances,together with interest at the rate stated below, from Available Tax Increment (as defined in Section 2.03). Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-annually on each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the Executive Director, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by theExecutive Director, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to theAuthorityby AnokaCounty all in accordance withthe Act. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or EDA Minutes Page 15 July 10, 2017 contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre- payable in whole or in part at any time by theAuthoritywithout premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidenceof an internal borrowing by theAuthorityin accordance with Section 469.178, Subd. 7of the Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This InterfundLoan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Cityor Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The Authorityshall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. TheAuthoritymay amend the terms of this Interfund Loan at any time by resolution of the Board, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. Adopted by the Board of Commissioners of the Columbia Heights Economic Development Authority on July 10, 2017. ATTEST: __________________________________ _____________________________________ Executive Director Secretary OTHER BUSINESS: There was no other business. The meeting was adjourned at 7:07 pm. Respectfully submitted, Jodi Griffin Acting Secretary