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HomeMy WebLinkAboutOct 9, 2017 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF OCTOBER 9, 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, and Joseph Hogeboom PLEDGE OF ALLEGIANCE- RECITED CONSENT AGENDA 1. Approve minutes of September 5, 2017 2. Approve Financial Report and Payment of Bills for August, 2017 – Resolution 2017-29 Questions from members: There was no further discussion of this item. Motion by Buesgens, seconded by Murzyn, to approve the Minutes of September 5, 2017, and the Financial Report and Payment of Bills for August, 2017 as presented. All ayes. MOTION PASSED. RESOLUTIONNO.2017-29 AResolution of theEconomic Development Authorityof Columbia Heights, Minnesota,Approving the Financial Statements for Month ofAugust 2017and the Payment of the Bills for the Month of August, 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 themonthofAugust 2017has been reviewed by the EDA Commission; and EDA Minutes Page 2 October 9, 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 __9th____ dayof ___October_____________, 2017 Offered by: Buesgens Seconded by: Murzyn Roll Call: All ayes BUSINESS ITEMS 1. Single Family Home Program-Approve concept application for 4641 Polk St NE Dahl explained that the Columbia Heights Economic Development Authority (the “EDA”) has received two (2) concept applications from two (2) separate home builders licensed by the State of Minnesota for the construction of a single family home on the property located at 4641 Polk Street NE (the “Subject Property”) within the Heritage Heights Neighborhood. The Subject Property is part of the Single Family Home Lot Sales Program (the “Program”), which was established in 2015 to stabilize and increase property values throughout the City of Columbia Heights (the “City”), but more specifically within the Heritage Heights Neighborhood. Lot prices for every property within the Program are based upon the most recent Estimated Market Land Value assessed by Anoka County. However, the EDA has reserved the right to review and adjust lot prices periodically provided that sufficient evidence supports the price reduction of the lot. EDA Minutes Page 3 October 9, 2017 Dahl said the Subject Property was assessed by Anoka County to have a 2018 estimated market land value of $56,300. However, after staff reached out to various local real estate agents, it was determine that the market value of the Subject Property still remains lower than the estimated market land value, but it has drastically increased since the construction of several new single family homes in the Heritage Heights Neighborhood. Therefore, staff estimates that the Subject Property would have a market value between $4.00 to $4.50 per square foot or approximately $29,620 to $33,320 based on the square footage of the lot. Staff has evaluated both concept applications attached hereto based on the proposed purchase price and the compliance to the development standards in the guidelines of the Program. Both concept applications meet the development standards, as well as incorporate unique features that go above and beyond the minimum requirements. However, based on the market value of the Subject Property, Home Detail offered $35,000 for the Subject Property, whereas Tollberg Homes offered $27,500. Therefore, staff deemed it necessary for the EDA commissioners to review both concept applications since several variables are under consideration, and the EDA retains absolute authority to decide whether or not to accept any particular proposal. STAFF RECOMMENDATION: Staff recommends approval of the concept application submitted by Home Detail as presented. Questions by members: The Commission discussed both the property at 4201 Jefferson Street NE, as well as the property at 4641 Polk Street NE during this period. Executive Director Fehst expressed the proposal presented by Tollberg Homes featured more decorative stone and other design features on the front-facing facades. Fehst questioned whether or not two-level homes would stand out along Jefferson Street. Commissioner Murzyn and Chair Szurek agreed that the proposed elevation may be out of scale with neighboring homes. Jeffrey Magdik, President of My Home Detail, stated that the design concepts could be refined prior to final approval. Mr. Magdik stated that the existing homes in Columbia Heights that have been built by My Home Detail use front porches as a way to provide visual articulation on front-facing facades, but that he is open to other alternatives. Magdik further stated that he has secured potential buyers for both properties. Commissioner Schmitt expressed that split-level homes, as presented in concept by Tollberg Homes, have accessibility issues and that her preference would be to see more traditional one- or two-level homes constructed. Commissioner Herringer asked whether or not both lots have to be sold to the same builder, or if they could be sold to separate builders. Secretary Dahl stated that either option is possible. EDA Minutes Page 4 October 9, 2017 Motion by Schmitt, seconded by Novitsky, to approve the concept application submitted by Home Detail for the property located at 4641 Polk Street NE, Columbia Heights, MN 55421. All ayes. MOTION PASSED. Motion by Schmitt, seconded by Buesgens, to authorize staff to work with Home Detail to determine specific house plans and to prepare a Purchase and Redevelopment Agreement for consideration at the next EDA meeting on November 6, 2017. All ayes. MOTION PASSED. 2. Single Family Home Program-Approve concept application for 4201 Jefferson St NE Dahl told members that the Columbia Heights Economic Development Authority (the “EDA”) has received two (2) concept applications from two (2) separate home builders licensed by the State of Minnesota for the construction of a single family home on the property located at 4201 Jefferson Street NE (the “Subject Property”). The Subject Property was acquired with the intent to be incorporated into the Single Family Home Lot Sales Program (the “Program”), which was established in 2015 to stabilize and increase property values throughout the City of Columbia Heights (the “City”). Lot prices for every property within the Program are based upon the most recent Estimated Market Land Value assessed by Anoka County. However, the EDA has reserved the right to review and adjust lot prices periodically provided that sufficient evidence supports the price reduction of the lot. Dahl stated that the Subject Property was assessed by Anoka County to have a 2018 estimated market land value of $50,000. However, after staff reached out to various local real estate agents, it was determine that the market value of the Subject Property is lower than the estimated market land value, but higher than the market value found throughout the Heritage Heights Neighborhood. Therefore, staff estimates that the Subject Property would have a market value between $6.50 to $7.00 per square foot or approximately $33,540 to $36,120 based on the square footage of the lot. Staff has evaluated both concept applications attached hereto based upon the proposed purchase price and the compliance to the development standards in the guidelines of the Program. Both concept applications meet the development standards, as well as incorporate unique features that go above and beyond the minimum requirements. However, based on the market value of the Subject Property, Home Detail has offered $35,000 for the Subject Property, whereas Tollberg Homes has offered $27,500. Therefore, staff deemed it necessary for the EDA commissioners to review both concept applications since several variables are under consideration, and the EDA retains absolute authority and discretion. STAFF RECOMMENDATION: Staff recommends approval of the concept application submitted by Home Detail as presented. Questions by members: This item was discussed in tandem with the previous agenda item. EDA Minutes Page 5 October 9, 2017 Motion by Schmitt, seconded by Buesgens, to approve the concept application submitted by Home Detail for the property located at 4201 Jefferson Street NE, Columbia Heights, MN 55421. All ayes. MOTION PASSED. Motion by Schmitt, seconded by Buesgens, to authorize staff to work with Home Detail to determine specific house plans and to prepare a Purchase and Redevelopment Agreement for consideration at the next EDA meeting on November 6, 2017. All ayes. MOTION PASSED. OTHER BUSINESS 3841 Central Avenue Update- Keith Dahl stated that due to time constraints with the 7:00 pm City Council meeting, he would provide a written update to the EDA concerning this item in the coming weeks. The meeting was adjourned at 7:00 pm. Respectfully submitted, Joe Hogeboom Deputy Director