HomeMy WebLinkAboutDec 4, 2017
ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF
DECEMBER 4, 2017
The meeting was called to order at 6:30 pm by President Marlaine Szurek.
Members Present: Murzyn,
Schmitt, Buesgens, Herringer, Williams, Novitsky, and Szurek
Staff Present: Walt Fehst, Keith Dahl, Joseph Hogeboom , and Shelley Hanson
PLEDGE OF ALLEGIANCE- RECITED
CONSENT
AGENDA
1. Approve minutes of November 6 and November 27, 2017
2. Approve Financial Report & Payment of Bills for October, 2017–Resolution 2017-35
Questions from Members:
There were no questions from members.
Motion by Novitsky, seconded by Schmitt, to approve the Minutes of November 6 and 27, 2017, and the Financial Report and Payment of Bills
for October, 2017 as presented. All ayes. MOTION PASSED.
RESOLUTIONNO.2017-35
AResolution of theEconomic Development Authorityof Columbia Heights, Minnesota, Approving the
Financial Statements for the Month of October 2017and the Payment of the Bills for the Month of October, 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 the month of October 2017has
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
EDA Minutes
Page 2
Dec 4, 2017
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 __4th____ dayof ___December_____________, 2017
Offered by: Novitsky Seconded
by: Schmitt
Roll Call: All ayes
BUSINESS ITEMS
1. Single Family Home Program-Approve Concept Application for 4641 Tyler St NE-
Dahl reminded members that on November 6, 2017,
the Columbia Heights Economic Development Authority (the “EDA”) tabled the consideration of a concept application submitted by Tollberg Homes for the construction of a single family
home located at 4641 Tyler Street NE, Columbia Heights, MN (the “Subject Property”) because the offer price of $22,500 was unacceptable to EDA Commission Members. Furthermore, the EDA
directed staff to counter the original offer made by Tollberg Homes for a price no less than $27,500.
Dahl stated that Tollberg Homes has agreed to increase the offer price for the
Subject Property to $27,500, and has therefore resubmitted a concept application to the EDA for further consideration. Wade Tollefson was present to answer questions.
Staff recommends
approval of the concept application submitted by Tollberg Homes.
EDA Minutes
Page 3
November 6, 2017
Questions by members:
The Commission was satisfied with the price but questioned why he was still submitting a split entry design for the house.
Tollefson said it fits into the surrounding neighborhood the best. The family who is purchasing this house wanted 5 bedrooms and 3 bathrooms to accommodate their family which can be
accomplished with this design. He stated there is a 6 foot elevation change on the lot and to construct a two story house would make it tower above other homes in the area and look
out of place.
Szurek asked how the garage is being accessed. Tollefson said the driveway would be off the alley to the rear of the house, but it is an attached garage which is preferable
to most homeowners.
Schmitt questioned if it is common practice to leave the lower level unfinished. Tollefson said it is common if buyers are trying to keep price points down so they
can finish the space as they can afford it. However, he said Tollberg Homes will be finishing the lower level of this home, and this will be shown on the final plan. Schmitt then asked
what size the porch is as she would like to see consistency with what they are requiring from the other builder. Tollefson said the front porch will be 12 x 6 with an additional 6 x
4 recessed porch area which meets the requirement.
Motion by Buesgens, seconded by Novitsky, to accept the concept application submitted by Tollberg Homes for the property located
at 4641 Tyler Street NE, Columbia Heights, MN 55421. All ayes. MOTION PASSED.
Motion by Buesgens, seconded by Murzyn, to authorize staff to work with Tollberg Homes to determine
specific house plans and to prepare a Purchase and Redevelopment Agreement for consideration at the next EDA meeting on January 2, 2018. All ayes. MOTION PASSED.
2. Single Family
Home Program-Final Sale Approval of 4201 Jefferson St NE-Resolution 2017-31
Dahl stated that on October 9, 2017, the Columbia Heights Economic Development Authority (the “EDA”) approved
the concept application submitted by Home Detail, Inc. 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.
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. Thus,
staff estimated that the Subject Property had 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. Home Detail’s
offer of $35,000 is around what the EDA could expect to sell the Subject Property for.
EDA Minutes
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Dec 4, 2017
Attached for review by EDA commission members is the Purchase and Redevelopment Agreement for the sale of the Subject Property, specifically the house
plan for the Subject Property. The specific house plan may be found in the Purchase and Redevelopment Agreement attached hereto in Exhibit B.
It should also be mentioned that 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 and staff will obtain the necessary signatures
at the EDA meeting to fully execute the Purchase and Redevelopment Agreement. If the EDA denies the final sale approval, staff will reimburse the earnest money to Home Detail.
A representative
from Home Detail was present at the EDA meeting to discuss their proposal, as well as to answer any questions commission members had regarding the proposal.
Staff recommends final sale
approval of 4201 Jefferson Street NE as presented.
Questions from Members:
The design submitted now shows the attached garage going out to 42nd Avenue which was acceptable to members.
However there was a discussion regarding the two entry areas off the Jefferson St side-one as the main entry to the home and one being a service door to the garage. Members thought
it was a confusing look.
Buesgens agreed the entry point might be misconstrued by some, but she liked the look.
Szurek didn’t like the design and stated she would vote against it.
Magdik stated he had a survey done and tried several options trying to meet the requirements but also trying to meet the buyer’s wishes. The buyer wanted to retain as much yard space
as he could.
Mohammad Hassan, the buyer, will have two children as of February. He said he wants the garage attached to the house in order to load/unload kids and groceries. He also
wants a walk out basement so it is easier to watch the kids when they play outside. He intends to also build a deck. He told members he grew up in this community and wants to stay
here and raise his family. He hoped the commission would approve the plan as submitted so they can proceed.
Hogeboom suggested moving the entry door to the home to the 42nd Avenue
side and just putting a window on the Jefferson side. This would mean the front entrance and garage would both be off 42nd Avenue. Magdik said the problem with that is that the stoop
and steps would be in the setback area. Hogeboom told him that it is permitted to have the stoop/steps encroach in the setback area as long as the main structures do not. Magdik said
he could make that work.
Motion by Buesgens, seconded by Herringer, to waive the reading of Resolution 2017-31, there being ample copies available to the public. All ayes. MOTION
PASSED.
Motion by Buesgens, seconded by Murzyn, to adopt Resolution 2017-31, a Resolution Approving the Purchase and Redevelopment Agreement with Home Detail, Inc. for the acquisition
of 4201 Jefferson Street NE, Columbia Heights, MN 55421 with the changes as discussed which will be included in the executed Redevelopment Agreement. All ayes. MOTION PASSED.
EDA Minutes
Page 5
Dec 4, 2017
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2017-31
RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH HOME DETAIL,
INC. – 4201 JEFFERSON STREET NE
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 located at 4201 Jefferson Street NE in the City
of Columbia Heights (the “City”) and included in the Program, described as attached hereto as Exhibit A (the “Property”), 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 the date hereof, 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.
1.04. 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, and that such conveyance has no relationship
to the City’s comprehensive plan.
Section 2. Approval and Authorization of Agreement and Conveyance
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 4th day of December, 2017.
Presi
dent
ATTEST:
Secretary
EXHIBIT A
Property
Lot 16, Block 32, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota.
EDA Minutes
Page 6
Dec 4, 2017
3. Single Family Home Program-Final Sale Approval of 4641 Polk St NE-Resolution 2017-32
Dahl told members that on October 9, 2017, the Columbia Heights
Economic Development Authority (the “EDA”) approved the concept application submitted by Home Detail, Inc. 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.
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. Home
Detail’s offer of $35,000 is above what the EDA could expect to sell the Subject Property for.
Attached for review by EDA commission members is the Purchase and Redevelopment Agreement
for the sale of the Subject Property, specifically the house plan for the Subject Property. The specific house plan may be found in the Purchase and Redevelopment Agreement attached
hereto in Exhibit B.
Also, it should be noted that staff received the earnest money in the amount of $2,000 and a partially executed Purchase and Redevelopment Agreement. If the EDA
approves the final sale tonight, the earnest money will become non-refundable and staff will obtain the necessary signatures at the EDA meeting to fully execute the Purchase and Redevelopment
Agreement. If the EDA denies the final sale approval, staff will reimburse the earnest money to Home Detail.
A representative from Home Detail was present at the EDA meeting to discuss
their proposal, as well as answer any questions commission members had regarding the proposal.
Staff recommends final sale approval of 4641 Polk Street NE as presented.
Questions by
members:
It was noted that the front porch was increased to 11 feet and the side window was removed. Szurek thought it was a good looking design. She questioned where the back door
to the home would be located. Magdik said there will be a patio door off the dining room with a couple of steps to grade.
Motion by Schmitt, seconded by Novitsky, to waive the reading
of Resolution 2017-32, there being ample copies available to the public. All ayes. MOTION PASSED.
EDA Minutes
Page 7
Dec 4, 2017
Motion by Schmitt, seconded by Murzyn, to adopt Resolution 2017-32, Resolution Approving the Purchase and Redevelopment Agreement with Home Detail, Inc.
for the acquisition of 4641 Polk Street NE, Columbia Heights, MN 55421. All ayes. MOTION PASSED.
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2017-32
RESOLUTION
APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH HOME DETAIL, INC. – 4641 POLK STREET NE
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 located at 4641 Polk Street NE in the City of Columbia Heights (the “City”) and included in the Program, described as attached hereto as Exhibit A (the “Property”),
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 the date hereof, 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.
1.04. 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, and that such conveyance has no relationship to the City’s comprehensive plan.
Section 2. Approval and Authorization of Agreement and Conveyance
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. Authorit
y 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 4th day of December, 2017.
President
ATTEST:
Secretary
EDA Minutes
Page 8
Dec 4, 2017
EXHIBIT A
Property
That Part of Lot 23 lying north of the south 20 feet of said Lot 23, and Lot 24, in Block 1, Sheffield’s Second Subdivision, Anoka
County, Minnesota according to the recorded plat thereof, and situate in Anoka County, Minnesota
OTHER BUSINESS
1. 3841 Central Ave. update-Dahl told members that the pipe broke
in the wall under the kitchen sink. The neighbor could hear the water running and saw water leaking to the outside, and came to City Hall to report it. Staff then went over and turned
off the water at the meter and then at the stop box. Dahl said Public Works will try to extract the excess water out of the carpet in the lower level and they will determine how much
sheetrock/insulation damage was done. He said structurally the house is sound, however, the condition of the plumbing, heating, and electrical systems is unknown. Members agreed. Dahl
suggested stripping the house of the appliances, stained glass, and anything else that may be of value and selling the items at a public auction. He then will go out for bids to have
the structure demolished. Dahl said he will keep members apprised of any developments.
2. 4827 University Ave-Dahl told members that the owner of the property at 4827 University approached
the city to see if they wanted to purchase his property since it a non-conforming use. This property is a 65 ft lot and is next door to a property the city bought several years ago
at 4833 University Ave which is a 55 ft vacant lot. Dahl said he is going to put an offer in with the owner of $117,000 which is the 2018 assessed value. Herringer asked if realtors
and sales commission would be involved. Dahl said no, this would be a direct agreement with the owner. He will keep members updated on whether the offer is accepted.
The meeting
was adjourned at 7:15 pm.
Respectfully submitted,
Shelley Hanson Secretary