HomeMy WebLinkAboutSept 5, 2017
ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF
SEPTEMBER 5, 2017
The meeting was called to order at 6:30 pm by President Marlaine Szurek.
Members Present: Murzyn,
Herringer, Schmitt, Williams, Novitsky, Buesgens, and Szurek
Staff Present: Walt Fehst, Keith Dahl, Joseph Hogeboom, and Shelley Hanson (Assistant Secretary)
PLEDGE OF
ALLEGIANCE- RECITED
CONSENT AGENDA
1. Approve minutes of August 7, 2017
2. Approve Financial Report and Payment of Bills for July, 2017 – Resolution 2017-26
Questions
from members:
Herringer asked what the payment was for to Independent Realty Mortgage for $5,000 (on page 24 of the report). Dahl explained this was the earnest money for the purchase
of 3841 Central Avenue which was then applied to the purchase price at the closing.
Motion by Williams, seconded by Schmitt, to approve the Minutes of August 7, 2017, and the Financial
Report and Payment of Bills for July, 2017 as presented. All ayes. MOTION PASSED.
RESOLUTIONNO.2017-26
AResolution of theEconomic Development Authorityof Columbia Heights,
Minnesota,Approving the Financial Statements for Month ofJuly 2017and the Payment of the Bills for the Month of July 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 resolutionand enter the resolution in its records; and
WHEREAS,the financial statement for themonthofJuly 2017has been reviewed by the EDA Commission; and
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Sept 5, 2017
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 __5th____ dayof ___September_____________,
2017
Offered by: Williams Seconded by: Schmitt
Roll Call: All ayes
BUSINESS ITEMS
1. EDA Budget and Tax Levy
Dahl explained that on September 5, 2017, the proposed budget
of fiscal year 2018 will be distributed to the City Council after the work session meeting. Before the City Council conducts their first review of the proposed budget later this fall
however, the Columbia Heights Economic Development Authority (the “EDA”) and the Housing and Redevelopment Authority in and for the City of Columbia Heights (the “HRA”) are required
to adopt fund budgets for Fund 201: Planning & Inspections and Fund 204: EDA Administration, and to authorize their respective 2017 tax levies, payable in 2018. Therefore, this report
presents the information and the necessary actions required for consideration by EDA Commission Members before the City Council begins to review the proposed budget.
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Sept 5, 2017
Included in the report are proposed fund budgets of Fund 201 and Fund 204 for the fiscal year 2018. Both fund budgets are administered by the Community
Development Department, and have therefore been incorporated into the departments overall budget for 2018. The EDA however, does not retain any authority over Fund 201, but since the
EDA annually transfers a nominal amount of funds from Fund 204 to it, the EDA has historically reviewed and approved it along with Fund 204. The Community Development Department is comprised
of three departments; Economic Development, Planning, and Building Safety. And of those three departments, the EDA administers a portion of all of their general operational and administrative
expenses. Whereas, the majority of these expenses are obtained through zoning application fees and building permit costs collected throughout the fiscal year.
Overall, the proposed
fund budgets are balanced, with funds specifically dedicated to maintain existing projects and initiatives, as well as allocating and repurposing funds for new programs that reflect
the priorities of the EDA, such as the Commercial Revitalization Project. Both proposed fund budgets account for increased revenues and expenses. Fund 201 incorporates a revenue increase
of 7.2% and an expense increase of 6.1% whereas; Fund 204 incorporates a revenue increase of 33.7% and an expense increase of 32.6%. These increases are due to several factors, such
as the recovering market values of properties throughout the City, positional salary increases based on living wage adjustments, increased project costs and expenses, but also the recent
increase of the 2017 EDA levy for taxes payable in 2018.
The EDA effectively has two separate tax levies after the City Council granted the EDA certain HRA powers in 1996. One tax
levy is administered by the City under Minnesota Statutes, Section 469.107 on behalf of the EDA (the “EDA Levy”) and the other is a special benefit tax levy administered by the EDA under
Minnesota Statutes, Section 469.033 on behalf of the HRA (the “HRA Levy”). The proposed fund budgets reflect both levies at their respective statutory caps of 0.01813 and 0.0185 of the
City’s estimated market value. The EDA Levy would capture $220,100 from the City’s estimated market land value; whereas the HRA Levy would net $224,592. And together, both levies would
result in a total net revenue of $444,692 in 2018.
Staff recommends approval of Resolution 2017-27 and Resolution 2017-28 as presented.
Questions from Members:
Szurek questioned
why there is still a need for a HRA budget. Dahl explained that we are required to keep an HRA Board in place due to the payment arrangements that were made for the sale of Parkview
Villa. The HRA is required to meet once or twice a year until the obligation is finalized, so there is staff time and operational expenses that occur because of this.
Herringer asked
about the format of the budget information that was provided. He noted that the Department column had proposed amounts listed and there weren’t any proposed amounts under the Manager’s
column. He questioned if the Dept. head determines the budget or whether the Manager ever makes changes to the amounts proposed by the Dept. head. Fehst explained that he has already
reviewed this budget with the Dept. Head and the amounts listed are set according to the limitations of available revenues. He said changes/cuts are made to department budgets when
necessary, but it is generally done before presentation to the Board or City Council.
Schmitt asked about the amount listed for employee expenses for Webmaster activity. She thought
that expense would be part of the budget for the new person as part of the Administration Dept. Dahl said the new Communications Coordinator position will take over the majority of
the website work, but there is still a need for someone from our department to submit information regarding building inspections, planning, and development projects to that new person.
The amount listed is to cover the expenses for that portion of the employee’s duties within the department.
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Schmitt then asked if the budget included funding for an intern position. Hogeboom said it is not usually included. He said if the workload increases,
so does the revenue, and he would then seek a budget amendment to cover an additional position, if deemed appropriate.
Motion by Buesgens, seconded by Williams, to waive the reading
of Resolutions 2017-27, there being ample copies available to the public. All ayes. MOTION PASSED.
Motion by Buesgens, seconded by Williams, to adopt Resolution 2017-27, a resolution
of the Columbia Heights Economic Development Authority, adopting a budget for the fiscal year of 2018 and setting the 2017 tax levy, payable in 2018.
Motion by Buesgens, seconded by
Murzyn, to waive the reading of Resolutions 2017-28, there being ample copies available to the public. All ayes. MOTION PASSED.
Motion by Buesgens, seconded by Novitsky, to adopt
Resolution 2017-28, a resolution of the Columbia Heights Economic Development Authority, adopting a budget for the fiscal year of 2018 and authorizing a special benefit tax levy, payable
in 2018.
RESOLUTION NO. 2017-27
A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, ADOPTING A BUDGET FOR THE FISCAL YEAR OF 2018 AND SETTING THE 2017 TAX LEVY, PAYABLE
IN 2018.
BE IT RESOLVED, by the Columbia Heights Economic Development Authority (the “EDA”) as follows:
WHEREAS, the City of Columbia Heights (the “City”) established the EDA by an
enabling resolution adopted on January 8, 1996, pursuant to Minnesota Statutes 469.090 to 469.1081 (the “EDA Act”); and
WHEREAS, the City Council of the City has given to the EDA the
responsibility for all development and redevelopment projects and programs; and
WHEREAS, under Section 469.107 of the EDA Act, the City is authorized to levy a tax for the benefit of
the EDA on its area of operation for the purposes authorized under the EDA Act, subject to the approval of the City Council.
NOW, THEREFORE BE IT RESOLVED, by the Board of Commissioners
of the Columbia Heights Economic Development Authority, that the EDA adopts and requests the City Council’s approval of its budget in the amount of $448,242 for 2018; and
BE IT FURTHER
RESOLVED, that the EDA adopts and requests the City Council’s approval of its tax levy in the amount of $220,100 for taxes payable in 2018; and
BE IT FURTHER RESOLVED, that the Executive
Director is instructed to transmit a copy of this resolution to the City Manager, Finance Director, and City Clerk of the City of Columbia Heights, Minnesota.
ORDER OF ECONOMIC DEVELOPMENT
AUTHORITY
Passed this _________ day of ______________________, 2017
Offered by:
Seconded by:
Roll Call:
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Sept 5, 2017
RESOLUTION NO. 2017-28
A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, ADOPTING A BUDGET FOR THE FISCAL YEAR OF 2018 AND AUTHORIZING
A SPECIAL BENEFIT TAX LEVY, PAYABLE IN 2018.
BE IT RESOLVED, by the Columbia Heights Economic Development Authority (the “EDA”) as follows:
WHEREAS, the City of Columbia Heights
(the “City”) established the EDA by an enabling resolution adopted on January 8, 1996, pursuant to Minnesota Statutes 469.090 to 469.1081 (the “EDA Act”); and
WHEREAS, the City Council
granted the EDA all powers and duties of a housing and redevelopment authority by an enabling resolution and ordinance adopted on October 22, 2001, pursuant to Minnesota Statutes 469.001
to 469.047 (the "HRA Act"), except certain powers that are allocated to the Housing and Redevelopment Authority in and for the City of Columbia Heights (the “HRA”); and
WHEREAS, under
Section 469.033 of the HRA Act, the EDA and HRA, are authorized to levy a special benefit tax, in an amount not to exceed .0185 percent of the City’s estimated market value (the “HRA
Levy”); and
WHEREAS, the EDA desires to maintain its HRA Levy at the amount of .0185 percent of the City’s estimated market value as authorized by the HRA Act; and
WHEREAS, the EDA
understands that the HRA does not expect to levy a special benefit tax for the fiscal year of 2018; and
WHEREAS, the EDA has before it for consideration a copy of its budget for the
fiscal year of 2018, and the amount of the HRA Levy, payable in 2018 shall be based on said budget.
NOW, THEREFORE BE IT RESOLVED, by the Board of Commissioners of the Columbia Heights
Economic Development Authority, that the EDA hereby adopts and requests the City Council approve its budget in the amount of $448,242 for 2018, and such budget includes the amount the
EDA requests to be levied by the City under Section 469.107 of the EDA Act, and the EDA under Section 469.033, of the HRA Act; and
BE IT FURTHER RESOLVED, that the EDA hereby directs
staff to file its budget with the City in accordance to Section 469.033 of the HRA Act, and take such actions necessary to levy and certify the HRA Levy in the amount of $224,592 for
taxes payable in 2018.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this _________ day of ______________________, 2017
Offered by:
Seconded by:
Roll Call:
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Sept 5, 2017
OTHER BUSINESS:
Commercial Revitalization Project-3841 Central Avenue Update –
Dahl passed out a memo regarding possible relocation of the house
purchased at 3841 Central Avenue. It was purchased in early 2017 for $100,000. The owner then renovated it and we purchased it last month for $200,000. Staff believes the home could
be moved to an empty lot in our City so that we could recoup some of the expenses we incurred obtaining the property. The building official will prepare a formal report but has noted
that a full basement would need to be constructed to set the home on, and the stairs in the home would need to be reconfigured to meet code. Staff would also recommend constructing
a double garage. He told members that the EDA currently owns 4641 Tyler St and 4201 Jefferson St and GMHC owns a lot at 3805 2nd St. Dahl stated he thought the 2nd Street lot would
be the best option as it would fit the character of the neighborhood and would be the site that would be easiest to get to. The Jefferson St property could also work.
Dahl told members
that he has been in contact with GMHC and they are open to the idea of partnering with the City. They would take care of constructing the basement and garage, and they have companies
they have worked with that would actually move the house. Dahl stated we may not get our entire investment back, but should be able to recoup the majority of the expenditure.
Herringer
asked if staff had looked at selling the home to someone else who would move it so we don’t have to incur additional expenses. Fehst said we probably wouldn’t get much for the house.
Cities who have done this in the past usually sell the houses for a minimal amount (often times $1.00). Fehst said that staff will get information on both ideas and bring estimated
costs back to the Board for consideration.
Murzyn asked if we still own the property on 3rd Street near the Root property. He said maybe that would be a better site since we own the
lot and wouldn’t have to partner with GMHC. Hogeboom said it is an option, but that the City has been holding onto the lot until we know what will happen with the Root parcel. It could
eventually be combined with the Root property to make it a more desirable site for redevelopment.
The meeting was adjourned at 7:20 pm.
Respectfully submitted,
Shelley Hanson
Assistant Secretary