Loading...
HomeMy WebLinkAbout20170206_EDA_Packet ECONOMIC DEVELOPMENT AUTHORITY AGENDA February 6, 2017 5:30 pm City Hall Conference Room 1 th 590 40 Avenue NE Columbia Heights, MN 55421 Meeting to be opened by the Executive Director 1.Call to Order 2.Roll Call 3.Pledge of Allegiance 4.Oath of Office a.Donna Schmitt, Robert Williams, and Connie Buesgens 5.Election of Officers Meeting to resume under the leadership of the newly elected EDA President CONSENT AGENDA 6.Approve minutes of January3, 2017 7.Approve Financial Report and Payment of Bills for December 2016 - Resolution 2017- 01 Motion: Move to approve Consent Agenda as presented. BUSINESS ITEMS 8.Designation of Official Depositories for the EDA -Resolution 2017-02 Motion: Move to waive the reading of Resolution 2017-02, there being ample copies available to the public. Motion: Move to adopt Resolution 2017-02, a resolution designating official depositories for the Columbia Heights Economic Development Authority. The next regular EDA meeting will be March 6th, 2017at City Hall. 9.EDA Bylaws Amendment - Resolution 2017-03 Motion: Move to waive the reading of Resolution 2017-03, there being ample copies available to the public. Motion: Move to adopt Resolution 2017-03, a resolution approving an amendment to the bylaws of the Columbia Heights Economic Development Authority. 10.Right of Reverter for the real property located at 4647 Polk Street NE, Columbia Heights, MN - Resolution 2017-04 Motion: Move to waive the reading of Resolution 2017-04, there being ample copies available to the public. Motion: Move to adopt Resolution 2017-04, Resolution approving the cancellation of the purchase and redevelopment agreement between the Columbia Heights Economic Development Authority and Katherine and Steve Pepple. 11.Third Amendment ACCAP Purchase Agreement for EDA Acquisition of 4641-43 Polk Street - Resolution 2017-05 Motion: Move to waive the reading of Resolution 2017-05, there being ample copies available to the public. Motion: Move to adopt Resolution 2017-05, a resolution approving a Third Amendment of a Purchase Agreement between the Columbia Heights Economic Development Authority and Anoka County Community Action Program. OTHER BUSINESS 12.Liquor Store Bonds Discussion 13.Membership of the EDA Discussion 14.Updates from 2016 and Project Discussions for 2017 15.Adjourn The next regular EDA meeting will be March 6th, 2017 at City Hall. 1 AGENDA SECTION ELECTION OF OFFICERS ITEM NO.5 MEETING DATE JANUARY 4, 2016 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM: Election of Economic Development Authority Officers DEPARTMENT: Economic Development Authority APPROVAL: BY/DATE: Joe Hogeboom, January 11, 2017 BY/DATE: BACKGROUND: The bylaws of the Economic Development Authority require that officers are elected annually. The most recent officers that served were as follows: President Gary Peterson Vice President Bobby Williams Treasurer Bruce Nawrocki To be considered for an officer position, a member must be nominated by another member, or by him or herself. The bylaws require that the Executive Director conduct the following nomination process. 1.President a.Please provide all nominations for President of the EDA. b.Vote individually for each nominated member. c.The member with the most votes is declared the President of the EDA by the Executive Director. 2.Vice President a.Please provide all nominations for Vice President of the EDA. b.Vote individually for each nominated member. c.The member with the most votes is declared the Vice President of the EDA by the Executive Director. 3.Treasurer a.Please provide all nominations for Treasurer of the EDA. b.Vote individually for each nominated member. c.The member with the most votes is declared the Treasurer of the EDA by the Executive Director. It is also noted that the EDA Bylaws require the City Manager (Walt Fehst) to and the Community Development Director (Joe Hogeboom) to serve as the Shelley Hanson continue to serve as the Assistant Secretary, that Keith Dahl serves as the Secretary and that Joe Kloiber serve as Assistant Treasurer. Staff recommends approval of the following motions: 2 City of Columbia Heights EDA Letter City of Columbia Heights - Council Letter Page 2 Motion: Move to elect ____________________ as President of the Economic Development Authority. Motion: Move to elect ____________________ as Vice President of the Economic Development Authority. Motion: Move to elect ____________________ as Treasurer of the Economic Development Authority. Motion: Move to appoint Keith Dahl as Secretary of the Economic Development Authority. Motion: Move to appoint Shelley Hanson as the Assistant Secretary of the Economic Development Authority. Motion: Move to appoint Joseph Kloiber as the Assistant Treasurer of the Economic Development Authority. Following ratification of the above motions, the newly elected President of the EDA will now preside over the remainder of the meeting. 3 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETINGOF JANUARY3, 2017 The meeting was called to order at 6:30pm by Chair Gary Peterson Members Present:Donna Schmitt,JohnMurzyn, Marlaine Szurek,,Bruce Nawrocki ,Bobby Williams, Gerry Herringer,and Gary Peterson. Others present:Connie Buesgens, newly elected Councilmember Staff Present:Walt Fehst,Joseph Hogeboom, Keith Dahl,and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED CONSENT ITEMS 1.Approve the Minutes from November 7, 2016 2.Approve the Financial Report and Payment of Bills for October and November 2016 on Resolution 2017-01. Questions by Members: No questions or comments. Motion byNawrocki,seconded byWilliams,to waive the reading of Resolution 2017-01 there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion byNawrocki, seconded byWilliams, to approve the Minutes and Financial Report and Payment ofBills forOctober and November, 2016 as presented. All ayes. MOTION PASSED. RESOLUTION NO. 2017-01 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for the MonthsofOctober and November, 2016and the Payment of the Bills for the Monthsof October and November, 2016. 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 WHEREAS, the financial statementsfor the monthsofOctober and November, 2016 has been reviewed by the EDA Commission; and 4 EDA Minutes Page 2 January3, 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 a 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 3rdday ofJanuary, 2017. Motion by: Seconded by: BUSINESS ITEM 1.Discuss Right of Reverter Execution for 4647 Polk St NE Dahl explained to members that on August 28, 2014, the Columbia Heights Economic -family, owner-occupied home to be const Agreement obligated the Pepplesto substantially complete construction by January 30, 2016 or the EDA would have the right to re-enter and take possession of the Property. At the time the EDA sold the Property to the Pepplesfor $7,500, they indicated that their intentions were to ultimately sell their existing home and construct a new home on the Property. To date, the Peppleshave not substantially constructed a single-family home on the Property. The City Building Official has reviewed two different sets of plans for the Pepplesproposed home; however no permits have been issued for construction and no plan review fees have been paid. Since construction has not been substantially completed, the EDA mayretake the Property and pay the Pepplesthe remaining balance of the purchase price after the EDA has reimbursed itself for all costs and expenses incurred in connection with the recapture, management, and resale of the Property. 5 EDA Minutes Page 3 January 3, 2017 Staff sent out a letter to the Pepplesinforming them of their default to the Agreement and the pending actions that may be taken by the EDA. On November 28, 2016, staff received the attached letter from the Pepples requesting the EDA considerpurchasing the Property back due to a financial hardship. For discussion tonight, Staff is seeking direction from the EDA on whether or not to proceed with the right-of-reverter to re-enter and take possession of the Property. And if the EDA chooses to do that, whatamount of our expensesdoes the EDA expect to recoup. Dahl stated that if the EDA decidesto re-enter and take possession of the Property, Tollberg Homes has communicated to staff that they would be interested in purchasing the Property tobuild a single- family home specific to the requirements of the Single Family Home Lot Sales Program. A copy -of-reverterto reacquire the Property so that it may be added to the Single Family Home Lot Sales Program for sale to a developer. Questions/comments from members: Nawrockiasked what outstanding fees we haveincurred thus far. Dahl stated there were legal fees for drafting the Purchase/Development Agreement, recording/transfer fees, plan review fees, and there will be fees incurred to process the Right of Reverter Clause.Dahl said the costs probably exceed the $7,500 purchase price. Dahl was asked why they decided not to build and whether they are current on the property taxes. Dahl explained they have experienced a financial hardship and are not comfortable moving forward with construction, but they have paid the taxes on the parcel. He said they have requested that the City buy the lot back. Under the current agreement the Pepples are not allowed to sell the lot to someone else themselves. Hogeboom told members that he had -purchase, we must go through the Right to Revert process. Herringer askedif the Pepples still lived in Columbia Heights. Hogeboom stated they live next door to this lot and have been residents of this neighborhood for a long time. Fehst said it was an unfortunate set of circumstances that led to their request for the City to take the lot back. Hogeboom stated the Pepples would like to have the whole purchase price returned to them, however he suggested that we subtract the amount of the second planreview ($1,355.74) off the purchase price of $7,500 and refund them the difference. Herringer said the EDA should recoup some of the expenses and thinks a refund of $6,100-$6,200 is fair. 6 EDA Minutes Page 4 Jan 4, 2017 Members generally agreed with that based on the fact that the lot will be re-sold at a higher price and that will help cover the other expenses we have incurred. Members asked Dahl what he thinks Tollberg would be willing to pay for the lot. Dahl said he expects to get $18,500-$25,000 for the lot once it is put back on the market. Motion byNawrocki, seconded by Szurek, to direct staff to proceed with excursing the right-of- reverter, pursuant to the Purchase and Redevelopment dated August 28, 2014 between the EDA and the Pepplesfor the construction of a single-family, owner-occupied home at 4647 Polk Street NE for $7,500, minus plan review fees of $1,355.74 for a refund of $6,144.26 to the Pepples.All ayes. MOTION PASSED. Hogeboom said the next step will be to send them a written demand to fulfill their original agreement, and they will be given a 30 day timeframe to take action. If not, then the City will then proceed with the legal documents to take the property back. The Pepples are aware they will be issued the demand letter as the first step. OTHER BUSINESS: 1.CDBG APPLICATION- Dahl told members that staff has filled out a CDBG application for 2017 funding to purchase the thth Root property at 40and University. The application will go to the City Council January 9and th must be submitted by January 13. It will require extensive clean up if we get funding to purchase the property. Dahl said we would apply for clean-up funds through the Met Council and DEED. He estimated those costs to be $300,000 to $500,000. Hogeboom said this is a good time to move on this property since interest has increased in redeveloping this area due to the construction on the east side of University. Herringer asked what size the Root property was. Dahl said it was 1.19 acreswhich includes 3 accessory structures and the foundation of the primary structure. There was a discussion among members regarding the surrounding properties and the potential for future redevelopment of the whole west side of University. 2.HYVEE UPDATE- Hogeboom told members that Hyvee was turned down for the grant application for remediation costs so this put them behind schedule as they are trying to obtain financing elsewhere. He said they have purchased the property and the rumors that they are backing out are untrue. He did tell members that Hyvee plans on taking plans to the Planning & Zoning meeting in February for the th construction of a gas station/convenience store on 47Avenue and Central. They would like to start construction by spring and once that is started they will start the remediation process of the store itself located in the mall. 7 EDA Minutes Page 5 Jan 4, 2017 3.NAWROCKI FAREWELL- Nawrocki said life has ups and downs, and that at the New Year he tries to put the negatives behind him and start fresh. He wished everyone the very best in the New Year, and hopes they all look forward to what lies ahead. The next meeting will be February 6 after the HRA meeting which is scheduled for 6:00 pm. The HRA will get an update from the Attorney regarding the by-laws, and changes to handle the financial obligations will be addressed. The attorney will also be present at the EDA meeting to answer any questions the Board may have. The meeting was adjourned at6:45 pm. Respectfully submitted, Shelley Hanson Secretary 8 RESOLUTION NO. 2017-01 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for Month of December 2016 and the Payment of the Bills for the Month of December 2016. 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 WHEREAS, the financial statement for the month of December 2016 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, Finance Department in a method outlined by the State 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. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this _________ day of ______________________, 2017 Offered by: Seconded by: Roll Call: President Attest: Assistant Secretary 9 Resolution 2017-01 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 AGENDA SECTION BUSINESS ITEMS ITEM NO.8 MEETING DATE FEBRUARY 6, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM: ADOPT RESOLUTION 2017-002 DESIGNATING OFFICIAL DEPOSITORIES FOR THE EDA DEPARTMENT: Finance S APPROVAL: BY/DATE: Joseph Kloiber, January 31, 2017 BY/DATE: BACKGROUND: Minnesota statute generally requires local units of government to designate by resolution the financial institutions used as depositories by the local unit of government. The attached resolution follows the general format of the related resolution passed in previous years by the City and the HRA. Most general banking transactions of the EDA/City/HRA are conducted through Northeast Bank. Accounts are also maintained at Wells Fargo Bank of Minnesota, N.A. and U.S. Bank for certain specialized services such as payroll and debt service payments. Under this resolution, investment firms used for the pooled investments of the EDA/City/HRA must have an office in the State of Minnesota, and all investments must comply with authorized investments as set forth in Minnesota statutes. The only material difference between this proposed resolution and the resolution adopted annually by the City Council is that the EDA resolution separate checking account under its own name. All EDA expenditures since its inception have been made using STAFF RECOMMENDATION: Staff recommends maintaining these three banking relationships, In combination, they meet the EDA/City/HRA. Staff is currently reviewing the number of brokerage firms used for the investment pool, and will provide the Commissioners with broker updates as that review progresses. RECOMMENDED MOTION(S): Move to waive the reading of Resolution 2017-002, there being ample copies available to the public. Move to adopt Resolution 2017-002, being a resolution designating official depositories for the Columbia Heights Economic Development Authority. ATTACHMENTS: Resolution 2017-002 48 EDA Letter_Resol_2017-02.docx RESOLUTION NO. 2017-02 A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, DESIGNATING OFFICIAL DEPOSITORIES. Now, therefore, in accordance with the bylaws and regulations of the Columbia Heights Economic Development Authority (the Authority), the Board of Commissioners of the Authority makes the following: ORDER OF BOARD IT IS HEREBY RESOLVED, that Northeast Bank, Wells Fargo Bank of Minnesota, N.A., and U.S. Bank are hereby designated as depositories for the funds. IT IS FURTHER RESOLVED, that the funds of the Authority can be held in accounts at these depositories under the name and federal identification number of the City of Columbia Heights, Minnesota (the City), together with the funds of the City, provided that separate fund accounting records are maintained for the respective Authority and City shares of such accounts in a manner consistent with generally accepted accounting and auditing standards. IT IS FURTHER RESOLVED, that the responsibility for countersigning orders and checks drawn against funds of hereby delegated to the City Mayor. IT IS FURTHER RESOLVED, that checks, drafts, or other withdrawal orders issued against the funds of the Authority on deposit with these depositories shall be signed by the following: City Mayor City Manager City Treasurer-Finance Director and that said banks are hereby fully authorized to pay and charge said accounts for any such checks, drafts, or other withdrawal orders issued by the City on behalf of the Authority. IT IS FURTHER RESOLVED, that Northeast Bank, Wells Fargo Bank of Minnesota, N.A., and U.S. Bank are hereby requested, authorized and directed to honor checks, drafts or other orders for the payment of money drawn in th name on behalf of the Authority, including those drawn to the individual order of any person or persons whose name or names appear thereon as signer or signers thereof, when bearing or purporting to bear the facsimile signatures of the following: City Mayor City Manager City Treasurer-Finance Director and that Northeast Bank, Wells Fargo Bank of Minnesota, N.A., and U.S. Bank shall be entitled to honor and to charge the Authority, or the City on behalf of the Authority, for all such checks, drafts or other orders, regardless of by whom or by what means the facsimile signature or signatures thereon may have been affixed thereto, if such facsimile signature or signatures resemble the facsimile specimens duly certified to or filed with the Banks by the Treasurer or other officer of the Authority or City. 49 Resolution 2017-02 City of Columbia Heights EDA Resolution Page 2 IT IS FURTHER RESOLVED, that all transactions, if any, relating to deposits, withdrawals, re-discounts and borrowings by or on behalf of the Authority with said depositories, made directly by the Authority or by the City on the behalf of the Authority, prior to the adoption of this resolution be, and the same hereby are, in all things ratified, approved and confirmed. IT IS FURTHER RESOLVED, that any bank designated above as a depository, may be used as a depository for investment purposes, so long as the investments comply with authorized investments as set forth in Minnesota Statutes. IT IS FURTHER RESOLVED, that any brokerage firm with offices in the State of Minnesota may be used as a depository for investment purposes so long as the investments comply with the authorized investments as set forth in Minnesota Statutes. IT IS FURTHER RESOLVED, that the funds of the Authority can be held in accounts at such brokerage firms under the name and federal identification number of the City, togetherwith the funds of the City, provided that separate fund accounting records are maintained for the respective Authority and City shares of such accounts in a manner consistent with generally accepted accounting and auditing standards. BE IT FURTHER RESOLVED, that any and all resolutions heretofore adopted by the Board of Commissioners of the Authority with regard to depositories or brokerage firms are superseded by this resolution. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this _________ day of ______________________, 2017 Offered by: Seconded by: Roll Call: President Attest: Assistant Secretary 50 AGENDA SECTION BUSINESS ITEMS ITEM NO.9 MEETING DATE FEBRUARY 6, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM: EDA Bylaws Amendment DEPARTMENT: Economic Development Authority BY/DATE: Keith M Dahl, February 1, 2017 BY/DATE: BACKGROUND: After reviewing the bylaws, staff has become aware of outdated language specifically in regards to the election of an Assistant Treasurer. The Assistant Treasurer is an EDA position that is supposed to be elected annually; however the Assistant Treasurer has always been the Finance Director of Columbia Heights. Instead of electing an Assistant Treasurer annually, staffproposesthat the EDA bylaws be amended to permanently appoint the duties of the Assistant Treasurer to the Finance Director of Columbia Heights. Attached please find the amended and restated bylaws of the EDA. All proposed language in the EDA bylaws ismarked with an underlinefor an addition or a strikeoutto indicate a deletion. STAFF RECOMMENDATION: Staff recommends approving the Amended and Restated Bylaws of the EDA as presented. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2017-03, there being ample copies available to the public. Motion: Move to adopt Resolution 2017-03, a resolution approving an amendment to the bylaws of the Columbia Heights Economic Development Authority. ATTACHMENTS: 1.Resolution 2017-03 (5 Pages) 2.Amended and Restated Bylaws of the EDA (4 Pages) 51 City of Columbia Heights EDA Letter COLUMBIA HEIGHTSECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2017-03 RESOLUTION APPROVING AMENDMENT OFBYLAWS Section 1.Recitals. 1.01.The Board of Commissioners of the Columbia HeightsEconomic has considered proposed certain amendments to its Bylaws. 1.02.Article IV, Section 6of the Bylaws provides for amendments to the Bylaws by majority vote of the Board at any regular or special meeting of the Authority. 1.03.The Board has determined thatit is reasonable, expedient and in the best interest of the public to amendArticle II, Sections 1 and 7 ofthe Bylaws to designate the City Finance Director as Assistant Treasurerof the Authority, and to amend Article III, Section 1 of the Bylaws toupdate the regular meeting dates of the Authority Board. Section 2.Approval of Amendment to Bylaws.The Authorityhereby approves the amendment to itsBylaws inthe form attached to this Resolutionas Exhibit A. th Adopted by the Columbia Heights Economic Development Authority this 6of February, 2017. __________________________________ President ATTEST: ______________________________________ Assistant Secretary 52 EXHIBIT A AMENDED AND RESTATED BYLAWS OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I -THE AUTHORITY Section 1. NAME OF AUTHORITY. The name of the Authority is the "Columbia Heights Economic Development Authority." Section 2. OFFICE OF AUTHORITY. The offices of the Authority are at City Hall in the City of Columbia Heights, Minnesota. The Authority may hold its meetings at such other place or places as it designates by resolution. Section 3. COMMISSIONERS. The Authority is governed by seven commissioners appointed in the manner prescribed by City Council Resolution No. 96-01, as amended (Enabling Resolution) and Minnesota Statutes, Sections 469.090 to 469.1081 (Act). Section 4. OFFICIAL SEAL. The Authority shall have an official seal, which shall be in the form of a circle and shall bear the nameof the Authority and the year of its organization. ARTICLE II -OFFICERS Section 1. OFFICERS. The officers of the Authority are the President, the Vice-President, the Secretary, the Treasurer and the Assistant Treasurer. The President, Vice President, Treasurer and Secretary shall be elected annually. No commissioner may serve as President and Vice President at the same time. The offices of Secretary and Assistant Treasurer need not be held by a commissioner. Section 2. PRESIDENT. The Presidentpresides at meetings of the Authority. Except as otherwise authorized by resolution of the Authority, the President signs contracts, deeds and other instruments made by the Authority. At each meeting, the President may submit recommendations and information concerning the business, affairs and policies of the Authority. At the annual meeting, the President must submit to the Authority a report summarizing the activities and programs of the Authority for the past year and containing the President's recommendations for Authority activities for the ensuing year. Section 3. VICE-PRESIDENT. The Vice-President performs the duties of the President in the absence or incapacity of the President; and in case of the disability or absence of the President, or inthe case of a vacancy in the office of President, the Vice-President performs the duties of the President until a successor has been appointed and qualifies. Section 4. SECRETARY. The Secretary performs the duties of a secretary for the Authority. Section 5. TREASURER. The Treasurer has the duties given by the Act. 53 Section 6. EXECUTIVE DIRECTOR. The Columbia Heights City Manager is the Executive Director of the Authority and has general supervision over the administration of its business and affairs subject to the direction of the Authority and signs contracts, deeds and other instruments made by the Authority. The Executive Director is responsible for the management of the projects and general affairs of Authority under the direction of the Commissioners. Section 7. OTHER ADMINISTRATIVE OFFICERS. Subdivision 1. Assistant Secretary. The Authority may designate an assistant to the Secretary to keep the records of the Authority, record the meetings of the Authority in a journal of proceedings to be kept for that purpose and to perform the duties of secretary under the direction of the Secretary. The assistant must keep in safe custody the seal of the Authority and may affix the seal to contracts and instruments authorized by the Authority. Subd. 2. Assistant Treasurer. The Columbia Heights Finance Director of the City is the Assistant Treasurer of the Authority. The Assistant Treasurer of the Authority has custody of funds of the Authority. The Assistant Treasurer must deposit the funds in the name of the Authority in a bank or banks selected by the Authority. The Executive Director and the Assistant Treasurer must sign orders and checks for the payment of money and pay out and disburse such monies under the direction of the Authority.Except as otherwise authorized by resolution of the Authority, orders and checks must also be countersigned by the President. The Assistant Treasurer must keep regular books of accounts showing Authority receipts and expenditures and render to the Authority, at the annual meeting (and when requested by the Authority), an account of the financial condition of the Authority. Subd. 3. Deputy Executive Director. The Columbia Heights Community Development Director is the Deputy Executive Director and performs such duties and services as specified by the Executive Director, subject to direction of the Authority. In the absence or incapacity of the Executive Director, the Deputy Executive Director may sign contracts, deeds and other instruments made by the Authority. Section 8. COMBINING ADMINISTRATIVE OFFICES. Administrative offices may be combined. Section 9. ADDITIONAL DUTIES. The officers of the Authority perform other duties and functions as may from time to time be required by the Authority, these bylaws or the rules and regulations of the Authority. Section 10. VACANCIES. If the office of President, Vice-President, Treasurer, or Secretary becomes vacant, pursuant to Minnesota Statutes 351.02 or by other provisions of law, the Authority mustelect a successor at the next regular meeting or at a special meeting called for that purpose. The successor serves for the unexpired term of the office. ARTICLE III -MEETINGS Section 1. REGULAR MEETINGS. Monthly meetings are held at the regular meeting place of the Authority on the first Monday of each month at 6:30 p.m. unless that date is a legal holiday, in which case the meeting will be held on the next succeeding business day. In the event the date/time/meeting place of a particular meeting must be changed, the Executive Director may 54 make such change deemed necessary by notifying all Commissioners of the revised meeting time and date in accordance with the procedures for a special meeting. Section 3. SPECIAL MEETINGS. Special meetings of the Board of Commissioners may be called by the President, two members of the Board of Commissioners, or the Executive Director for the purpose of transacting any business designated in the call. The call (including location of meeting) for a special meeting must be delivered to Commissioners at least two days before the before the meeting. At a special meeting, no business may be considered other than designated in the call, but if all the members of the Authority are present at a special meeting any business may be transacted at such special meeting by unanimous vote. Section 4. QUORUM. The powers of the Authority are vested in the commissioners in officefrom time to time. Four commissioners constitute a quorum for the purpose of conducting business, but a smaller number may adjourn from time to time until a quorum is present, and when a quorum is not present, a smaller number may adjourn the meeting. Section 5. ORDER OF BUSINESS. The following is the order of business at regular meetings of the Authority. 1.Roll call. 2.Approval of minutes of the previous meeting. 3.Management Report. 4.Consent. 5.All other items. 6.Adjournment. Section 6. RESOLUTIONS: CONDUCT. Upon direction of the President, or the motion by two members of the Board of Commissioners, resolutions must be in writing and placed in the journal of the proceedings of the Authority. The meeting will be conducted in accordance with Roberts Rules of Order, Revised. Section 7. MANNER OF VOTING. Voting on questions coming before the Authority must be entered in the minutes of the meeting. When a quorum is in attendance, action may be taken by the Authority upon a vote of the majority of the commissioners. ARTICLE IV -MISCELLANEOUS Section 1. FISCAL YEAR. The fiscal year of the Authority shall be the same as the City's fiscal year. Section 2. TREASURER'S BOND. The Treasurer shall give bond to the state conditioned for the faithful discharge of official duties. The bond must be approved as to form and surety by the Authority and filed with the Secretary and must be for twice the amount of money likely to be on hand at any one time as determined at least annually the Authority, provided, however, that the bond must not exceed $300,000. 55 Section 3. REPORT TO CITY. The Authority shall annually, at a time designated by the City, make a report tot he City Council giving a detailed account of its activities and of itsreceipts and expenditures for the preceding calendar year. The Authority shall, at the City's request, make available all records necessary to conduct an audit of the Authority's finances. Section 4. BUDGET. The Authority shall annually send its budget to the City Council which budget includes a written estimate of the amount of money need by the Authority from the City in order for the Authority to conduct business during the upcoming fiscal year. Section 5. SERVICES. The Authority may contract for services of consultants, agents and others as needed to perform its duties and to exercise its powers. The Authority may also use the services of the City Attorney or hire a general counsel, as determined by the Authority. The Authority may not hire temporary or permanent employees without prior approval of the City Council. Section 6. AMENDMENTS TO BYLAWS. The bylaws of the Authority may be amended only with the approval of at least four commissioners at a regular meeting or at a special meeting called for that purpose. Amended Bylaws Approved: ________________________, 2017. 56 AMENDED AND RESTATED BYLAWS OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I -THE AUTHORITY Section 1. NAME OF AUTHORITY. The name of the Authority is the "Columbia Heights Economic Development Authority." Section 2. OFFICE OFAUTHORITY. The offices of the Authority are at City Hall in the City of Columbia Heights, Minnesota. The Authority may hold its meetings at such other place or places as it designates by resolution. Section 3. COMMISSIONERS. The Authority is governed by seven commissioners appointed in the manner prescribed by City Council Resolution No. 96-01, as amended (Enabling Resolution) and Minnesota Statutes, Sections 469.090 to 469.1081 (Act). Section 4. OFFICIAL SEAL. The Authority shall have an official seal, which shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. ARTICLE II -OFFICERS Section 1. OFFICERS. The officers of the Authority are the President, the Vice- President, the Secretary, the Treasurer and the Assistant Treasurer. The President, Vice President, Treasurer and Secretary shall be elected annually. The Assistant Treasurer shall be elected at the organizational meeting of the Authority and shall serve until another person is elected by action of the Authority. No commissioner may serve as President and Vice President at the same time. The offices of Secretary and Assistant Treasurer need not be held by a commissioner. Section 2. PRESIDENT. The President presides at meetings of the Authority. Except as otherwise authorized by resolution of the Authority, the President signs contracts, deeds and other instruments made by the Authority. At each meeting, the President may submit recommendations and information concerning the business, affairs and policies of the Authority. At the annual meeting, the President must submit to the Authority a report summarizing the activities and programs of the Authority for the past year and containing the President's recommendations for Authority activities for the ensuing year. Section 3. VICE-PRESIDENT. The Vice-President performs the duties of the President in the absence or incapacity of the President; and in case of the disability or absence of the President, or in the case of a vacancy in the office of President, the Vice- President performs the duties of the President until a successor has been appointed and qualifies. 57 Section 4. SECRETARY. The Secretary performs the duties of a secretary for the Authority. Section 5. TREASURER.The Treasurer has the duties given by the Act. Section 6. EXECUTIVE DIRECTOR. The Columbia Heights City Manager is the Executive Director of the Authority and has general supervision over the administration of its business and affairs subject to the direction of the Authority and signs contracts, deeds and other instruments made by the Authority. The Executive Director is responsible for the management of the projects and general affairs of Authority under the direction of the Commissioners. Section 7. OTHER ADMINISTRATIVE OFFICERS. Subdivision 1. Assistant Secretary. The Authority may designate an assistant to the Secretary to keep the records of the Authority, record the meetings of the Authority in a journal of proceedings to be kept for thatpurpose and to perform the duties of secretary under the direction of the Secretary. The assistant must keep in safe custody the seal of the Authority and may affix the seal to contracts and instruments authorized by the Authority. Subd. 2. AssistantTreasurer. The Columbia Heights Finance Director of the City is the Assistant Treasurer of the Authority.The Assistant Treasurer of the Authority has custody of funds of the Authority. The Assistant Treasurer must deposit the funds in the name of the Authority in a bank or banks selected by the Authority. The Executive Director and the Assistant Treasurer must sign orders and checks for the payment of money and pay out and disburse such monies under the direction of the Authority. Except as otherwise authorized by resolution of the Authority, orders and checks must also be countersigned by the President. The Assistant Treasurer must keep regular books of accounts showing Authority receipts and expenditures and render to the Authority, at the annual meeting (and when requested by the Authority), an account of the financial condition of the Authority. Subd. 3. Deputy Executive Director. The Columbia Heights Community Development Director is the Deputy Executive Director and performs such duties and services as specified by the Executive Director, subject to direction of the Authority. In the absence or incapacity of the Executive Director, the Deputy Executive Director may sign contracts, deeds and other instruments made by the Authority. Section 8. COMBINING ADMINISTRATIVE OFFICES. Administrative offices may be combined. Section 9. ADDITIONAL DUTIES. The officers of the Authority perform other duties and functions as may from time to time be required by the Authority, these bylaws or the rules and regulations of the Authority. 58 Section 10. VACANCIES. If the office of President, Vice-President, Treasurer, Assistant Treasurer or Secretary becomes vacant, pursuant to Minnesota Statutes 351.02 or by other provisions of law, the Authority must elect a successor at the next regular meeting or at a special meeting called for that purpose. The successor serves for the unexpired term of the office. ARTICLE III -MEETINGS Section 1. REGULAR MEETINGS. Monthly meetings are held without noticeat the regular meeting place of the Authority on the first Mondayof each month at 6:30p.m. unless that date is a legal holiday, in which case the meeting will be held on the next succeeding business day. In the event the date/time/meeting place of a particular meeting must be changed, the Executive Director may make such change deemed necessary by notifying all Commissioners of the revised meeting time and date in accordance with the procedures for a special meeting. Section 3. SPECIAL MEETINGS. Specialmeetings of the Board of Commissioners may be called by the President, two members of the Board of Commissioners, or the Executive Director for the purpose of transacting any business designated in the call. The call (including location of meeting) for aspecial meeting must be delivered to Commissioners at least two days before the meeting, and notice of the At a special meeting, no business may be considered otherthan designated in the call, but if all the members of the Authority are present at a special meeting any business may be transacted at such special meeting by unanimous vote. Section 4. QUORUM. The powers of the Authority are vested in the commissioners in office from time to time. Four commissioners constitute a quorum for the purpose of conducting business, but a smaller number may adjourn from time to time until a quorum is present, and when a quorum is not present, a smaller number may adjourn the meeting. Section 5. ORDER OF BUSINESS. The following is the order of business at regular meetings of the Authority. 1.Roll call. 2.Approval of minutes of the previous meeting. 3.Management Report. 4.Consent. 5.All other items. 6.Adjournment. Section 6. RESOLUTIONS: CONDUCT. Upon direction of the President, or the motion by two members of the Board of Commissioners, resolutions must be in writing 59 and placed in the journal of the proceedings of the Authority. The meeting will be conducted in accordance with Roberts Rules of Order, Revised. Section 7. MANNER OF VOTING. Voting on questions coming before the Authority must be entered in the minutes of the meeting. When a quorum is in attendance, action may be taken by the Authority upon a vote of the majority of the commissioners. ARTICLE IV -MISCELLANEOUS Section 1. FISCAL YEAR. The fiscal year of the Authority shall be the same as the City's fiscal year. Section 2. TREASURER'S BOND. The Treasurer shall give bond to the state conditioned for the faithful discharge of official duties. The bond must be approved as to form and surety by the Authority and filed with the Secretary and must be for twice the amount of money likely to be on hand at any one time as determined at least annually the Authority, provided, however, that the bond must not exceed $300,000. Section 3. REPORT TO CITY. The Authority shall annually, at a time designated by the City, make a report tot he City Council giving a detailed account of its activities and of its receipts and expenditures for the preceding calendar year. The Authority shall, at the City's request, make available all records necessary to conduct an audit of the Authority's finances. Section 4. BUDGET. The Authority shall annually send its budget to the City Council which budget includes a written estimate of the amount of money need by the Authority from the City in order for the Authority to conduct business during the upcoming fiscal year. Section 5. SERVICES. The Authority may contract for services of consultants, agents and others as needed to perform its duties and to exercise its powers. The Authority may also use the services of the City Attorney or hire a general counsel, as determined by the Authority. The Authority may not hire temporary or permanent employees without prior approval of the City Council. Section 6. AMENDMENTS TO BYLAWS. The bylaws of the Authority may be amended only with the approval of at least four commissioners at a regular meeting or at a special meeting called for that purpose. Amendedand RestatedBylaws Approved: ________________________, 2002.2017. 60 AGENDA SECTION BUSINESS ITEMS ITEM NO.10 MEETING DATE FEBRUARY 6, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM: Right-of-Reverter Execution 4647 Polk Street NE DEPARTMENT: Economic Development Authority BY/DATE: Keith M Dahl, February 1, 2017 BY/DATE: BACKGROUND: As requested by n January 3, 2017, the Columbia Heights directed staff to proceed with exercising the right-of-reverter, pursuant to the Purchase and Redevelopment dated August 28, 2014 for the construction of a single-family, owner-occupied home at 4647 Polk Street NE . Thus, staff sent out a 30-day written notice to the Peppnotice obligated that the to obtain a building permit for an approved house plan by 3:30 PM on February 6, 2017 or the EDA would re-enter and take back possession of the Property. hat the EDA purchase the Property back, they have let the 30-day written notice expire. The EDA may now take back possession of the property and $6,144.26 for the Property. This amount was previously determined at the EDA meeting on January 3, 2017 by deducting one plan review fee of $1,355.74 from the original purchase price of $7,500. A commitment will be completed for title insurance to verify that the Property has not been encumbered by mortgages liens, and/ or home equity loans. The cost of title insurance will be deducted from the sale price of the Property once the EDA sells the lot to a developer. Staff anticipates that the Property would sell to a state licensed home builder for about $20,000 - $25,000. For the consideration of the EDA, Resolution 2017-04 approves the right-of-reverter, cancels the Agreement , and adds the Property back into the Single Family Home Lot Sales Program, all subject to the receipt of a commitment for title insurance that is satisfactory to staff and legal counsel. STAFF RECOMMENDATION: Staff recommends approving Resolution 2017-04 as presented. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2017-04, there being ample copies available to the public. Motion: Move to adopt Resolution 2017-04, Resolution approving the cancellation of the purchase and redevelopment agreement between the Columbia Heights Economic Development Authority and Katherine and Steve Pepple. ATTACHMENTS: 1.Resolution 2017-04 (2 Pages) 61 City of Columbia Heights EDA Letter COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2017-04 RESOLUTION APPROVING CANCELLATION OF PURCHASE AND REDEVELOPMENT AGREEMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ANDKATHERINE AND STEVEN PEPPLE BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01.The Authorityand Katherine and Steven PeppleBuyer") previously enteredinto aPurchase and Redevelopment Agreementdated August 4, 2014 terms and conditions of sale and redevelopment of certain property located at 4647 Polk Streetand described as Lots25and 26, Block 1,Sheffields Second Subdivisionto Columbia Heights, Anoka County, Minnesota, and the Authority conveyed the Property to the Buyer pursuant to the Contract. 1.02.Pursuant to the Contract, the Buyer was required toconstruct a single family home, subject tozoning and building codes and policies, within one year after closing on the conveyance of the Property.If the Buyer failed to meet this deadline, the Contract provided that nd reacquire the Property. 1.03.The Buyer has failed to construct the single family home as required under the Contract, and the Authority sent written notice of default to the Buyer on January 4, 2017, informing the Buyer of its right to exercise its right of reverter. The Buyer has agreed to convey the Property back to the Authority. 1.04.The Authority finds that exercise of its right of reverter, cancellation of the Contract, ResidentialLot Sales Program for the purpose of remarketing the Property to other potential buyers are in the public interest and in the best interest of the Authority and City, because these actionswill allow the Property to be made available for private development under a duly approved housing program and will further the Section 2. Authority Approval; Further Proceedings. 2.01.The Board hereby approves exercise of its right of reverter and reacquisition of the Property via a warranty deed from the Buyer, cancellation of the Contract, and the addition of the Property to the Program, all subject to receipt of a commitment for title insurance and verification that no liens exist against the Property that would have a detrimental . 494138v1 MNI CL205-52 62 2.02.The President and Executive Director are hereby authorized to execute on behalf of the Authority the cancellation of the Contract and any documents related to reacquisition of the Property requiring execution by the Authority. 2.03.Authority and City staff are authorized and directed to take all actionsto add the Property to the Program and to market the Property pursuant to the Program guidelines. Approved by the Board of Commissioners of the Columbia Heights Economic Development th Authority this 6dayof February, 2017. President ATTEST: Assistant Secretary 494138v1 MNI CL205-52 2 63 AGENDA SECTION BUSINESS ITEM ITEM NO.11 MEETING DATE FEBRUARY 6, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM: Third Amendment ACCAP Purchase Agreement for City Acquisition of 4641-43 Polk Street DEPARTMENT: Community Development BY/DATE: Keith Dahl, February 1, 2017BY/DATE: BACKGROUND: Previously, the Columbia Heights Economic Development Authority (EDA) approved a Second Amendment to the Purchase Agreement on November 7, 2016 to extend the closing date to December 30, 2016. However, due to more unanticipated delays, ACCAP is requesting the closing date be extended again. For the EDA consideration tonight is a Third Amendment to the Purchase Agreement, which extends the closing for the sale of the Property to take place on or before March 31,2017.ACCAP intends to close on the Property as soon as an extension is granted. STAFF RECOMMENDATION: Staff recommends the approval of Resolution 2017-05, a resolution approving the Third Amendment of a Purchase Agreement that will extend the closing date of the Property to take place on or before March 31, 2017. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2017-05, there being ample copies available to the public. Motion: Move to adopt Resolution 2017-05, a resolution approving a Third Amendment of a Purchase Agreement between the Columbia Heights Economic Development Authority and Anoka County Community Action Program. ATTACHMENTS: 1.Resolution 2017-05 (2 Pages) 2.Third Amendment to Purchase Agreement (2 Pages) 64 COLUMBIA HEIGHTSECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 2017-05 RESOLUTION APPROVING A THIRDAMENDMENT TO APURCHASE AGREEMENTBETWEEN THECOLUMBIA HEIGHTSECONOMIC DEVELOPMENT AUTHORITY AND ANOKA COUNTY COMMUNITY ACTION PROGRAM, INC. BE IT RESOLVED ) of the Columbia Heights Economic Development Authority) as follows: Section 1.Recitals. 1.01.The Authority currently administers the Downtown CBD Redevelopment Project , pursuant to Minnesota Statutes, Sections 469.090 to 469.1082, as amended. 1.02.The Authorityand Anoka County Community Action Program, Inc. Seller executed a Purchase Agreement, dated as of May 26, 2016(the Agreementproviding for the conveyance by the Sellerto the Authorityof certainproperty within the Project and Citylegally describedas follows: That part of Lot 23 lying north of the South 20 feet of the SD Lot 23 and Lot 24, Block 1, nd Sheffields 2Subdivision, County of Anoka, State of Minnesota. 1.03.On August 31, 2016, the parties entered into a First Amendment to the Purchase 1.04.On October 28, 2016, the parties entered into a Second Amendment to the Purchase he deadline for conveyance of the Property. 1.05.The parties have negotiated and propose to execute a Third Amendment to the Property. Section 2.ThirdAmendmentApproved. 2.01.The ThirdAmendment as presented to the Boardis hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the Presidentand Executive Director, provided that execution of the Third Amendmentby such officials shall be conclusive evidence of approval. 493644v1 SJS CL205-62 65 2.02.The Presidentand Executive Directorare hereby authorized to execute on behalf of the Authoritythe ThirdAmendment and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority, its obligations thereunder. 2.03.Authoritystaff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Approved by the Board of Commissioners of the Columbia HeightsEconomic Development Authority this _____day of _______________, 2017. President ATTEST: Assistant Secretary 493644v1 SJS CL205-62 66 THIRDAMENDMENT TO PURCHASE AGREEMENT This Thirdis made this 6day of February, 2017by and between Anoka County Community Action Program, Inc., a Minnesota WHEREAS, the Sellerand theBuyerentered into that certain Purchase Agreementdated as of May 26, 2016Agreementconveyance by the Sellerto the Buyerof certainpropertyat 4641/4643 Polk Street located in the City of Columbia Heights, Anoka County, Minnesota and legally described as follows: That part of Lot 23 lying north of the South 20 feet of the SD Lot 23 and Lot 24, Block 1, nd Sheffields 2Subdivision, County of Anoka, State of Minnesota ; and WHEREAS, on August 31, 2016, the parties entered into the First Amendment to Purchase WHEREAS, on October 28, 2016, the parties entered into the Second Amendment to Purchase Agreement in order to WHEREAS, due to unanticipated delays, the parties have determined tofurtherextend the deadline for closing on the conveyance of the Property. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1.Amendment to Paragraph 7of the Agreement. Paragraph 7of the Agreementis amended as follows: CLOSING DATE. Theclosing of the sale of the Property shall take place on or before March 31, 2017unless otherwise mutually agreed by the parties. The closing shall take place at Columbia th Heights City Hall, located at: 590 40Avenue NE in Columbia Heights, Minnesota orsuch other location as mutually agreed upon by the parties. 2.Miscellaneous. Except as amended by this Amendment, the Agreementshall remain in full force and effect. (Remainder of this page intentionally left blank.) 493643v1 SJS CL205-62 67 IN WITNESS WHEREOF, the parties have executed this ThirdAmendment to Purchase Agreementas of the date written above. SELLER ANOKA COUNTY COMMUNITY ACTION PROGRAM, INC. By: ________________________________ Its: _________________________________ BUYER COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By:_________________________________ Its: President By:_________________________________ Its: Executive Director 493643v1 SJS CL205-62 68 AGENDA SECTION OTHER BUSINESS ITEM NO.12 MEETING DATE FEBRUARY 6, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM: Discussion of Options for Refunding (Refinancing) the EDA 2007 Liquor Store Bonds DEPARTMENT: Finance S APPROVAL: BY/DATE: Joseph Kloiber, January 31, 2017 BY/DATE: BACKGROUND: In 2007, the EDA issued $5 million of revenue bonds to finance the construction of two new liquor stores. The EDA owns the two buildings constructed, and leases the buildings to the City in exchange for lease payments Those 2007 EDA bonds are now eligible for refunding (refinancing). The remaining $3.7 million of the 2007 bonds that is still outstanding is scheduled to be paid through the year 2030. The 2007 bonds have an interest rate of approximately 4.9%. Interest rates of approximately 2.6% are currently available, depending on the type and terms of the refunding bonds issued. Staff is currently reviewing the available refunding th meeting, the Finance Director will provide an overview of these options to the Commissioners. STAFF RECOMMENDATION: At this time, staff expects to recommend that the refunding bonds be issued by the City instead of the EDA, in order to obtain the more favorable interest rate available to the Cityobligation bonds, as compared . If the EDA and City Council agree with the staff recommendation, then at a future EDA meeting, the EDA would approve a resolution for the early redemption of the 2007 EDA Liquor Store bonds, and transfer ownership of the buildings to the City in exchange for the City paying off the EDA bonds. 69 EDA Letter_Bonds_020617.docx AGENDA SECTION OTHER BUSINESS ITEM NO.13 MEETING DATE FEBRUARY 6, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM: Membership of the EDA Discussion DEPARTMENT: Economic Development Authority APPROVAL: BY/DATE: Keith Dahl, February 1, 2017 BY/DATE: BACKGROUND: The Columbia Heights Economic Development Authority (EDA) Commission Member Schmitt requested a discussion item about EDA membership, specifically relating to whether or not all city council member are required to serve on the board of commissioners, or if not, what requirements are there for nonresidents to serve on the board of commissioners. Legal counsel will be present at this meeting to discuss the attached memorandum and to address any questions or concerns EDA commissioners may have. ATTACHMENTS: 1.Membership of EDA Boards of Commissioners Memorandum (2 Pages) 70 City of Columbia Heights EDA Letter 470 US Bank Plaza Kennedy 200 South Sixth Street Minneapolis MN 55402 & (612) 337-9300 telephone Graven (612) 337-9310 fax http://www.kennedy-graven.com C H A R T E R E D MEMORANDUM To:Columbia HeightsEconomic Development Authoritystaff From:Martha Ingram, Kennedy & Graven Re:Membership of EDA Board of Commissioners Date:December 9,2016 You have requested information about the requirements for membership on the board of commissioners of an economic development authority established pursuant to Minnesota Statutes, members are required to serve on the board of commissioners, and if not, what rules as to the makeup of the board apply, including whether nonresidentsofthe city may serve as commissioners. The Columbia Heightswas established on Enabling l of the with the rules of the EDA Act, govern the membership, powers, and administration of the Authority. The rules of general application for the membership of a board of commissioners are found in Section 469.095, subd. 2 of the EDA Act. The language of this section grants a fair amount of latitude. For a seven-member commission(like the Authority), two members must be members of the city council of the city, and all members of the commission must be appointed by the mayor with the approval of the city council. A commission may be composed entirely of members of the city council, or may have a number of city council members greater than the required minimum but less than the entire membership. Unlike for elected municipal positions, residency in the applicable city is not a requirement for eligibility to serve on the board of commissioners of an economic development authority. In the face of this latitude, membership on the board of commissioners of authorities varies widely. In many cities, the members of the city council also serve as the commiss economic development authority, with no non-council membership. Other authorities have as little overlap with the city council as the EDA Act allows. Some enabling resolutions give strict rules as to what non-councilmembers are eligible, dictating that all commissioners must be residents of the city or that a certain number may be nonresidents but must own or have a high-ranking position at a business located in the city. Other enabling resolutions are silent as to who may serve as anon-councilmember commissioner. 491623v1 MNI CL205-3 71 In the case of the Authorityfor Columbia Heights, the Enabling Resolution provides that the must be members of the City C Thus, the membership requirements for the Authorityare currentlyvery flexible.It appears has consisted of the five members of the City Councilplus two additional commissioners, but this configurationis not a requirement under either If the Authority wishes to make a formal change toits commissioner membership requirements, this must be done after a public hearing, through a formal amendment to the Enabling Resolution. I would recommend this step only if the Authority wishes to consider particular, unchanging requirements for the membership on the board of commissioners going forward (that all commissioners must be residents of the City, for example). If the Authority wishes to preserve the flexibility that the Enabling Resolution currently allows, it is not necessary to make any formal changes, but simply to propose and vote on any membership within the current, minimal framework. If you have any questions about this matter, pleasedo not hesitate to contact me at the number above. 491623v1 MNI CL205-3 72 AGENDA SECTION OTHER BUSINESS ITEM NO.14 MEETING DATE FEBRUARY 6, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM: 2017 Strategic Planning Discussion DEPARTMENT: Economic Development Authority APPROVAL: BY/DATE: Keith Dahl, February 1, 2017 BY/DATE: BACKGROUND: Throughout 2016, the Economic Development Authority (EDA) has accomplished several projects and objectives. determine the projects and objectives that the EDA would like staff to focus on in 2017. Highlights of 2016 accomplishments include, but not limited to the following: 2016 EDA Accomplishments Completed the development of the Library . Facilitated redevelopment on the corner of University Avenue NE and 37th Avenue NE with the development of the Legends of Columbia Heights in an effort to complete the Huset Park redevelopment project initiated back in 2005 (One undeveloped parcel remains on the corner of Huset Parkway and Jefferson Street). Leveraged funds through the Legends of Columbia Heights development for the completion of a trail and fencing along the east side of University Avenue NE between 40th Avenue NE and 37th Avenue NE. Completed a voluntary groundwater monitoring report in Huset Park for the MPCA. Stimulated the redevelopment opportunity of the Central Valu Center by establishing a TIF district and entering into a Contact for Private Redevelopment with Hy-Vee for a grocery store to be located in Columbia Heights once again. Sold the remaining lots in the Scattered Site TIF District Housing Program. Initiated the Single Family Home Lot Sales Program and sold 5 of 6 lots that were available. Now, as the EDA looks ahead to 2017, staff seeks to facilitate discussion about what projects, programs, and objectives commission members desire to see initiated and/ or completed in 2017. First, staff would like to review the fund balances of several accounts that the EDA utilizes to accomplish its initiatives. The figures below are estimations and subject to change as the year-end fund balances have not been finalized for all the accounts. Fund 213, Parkview Villa South: $ 1,000,000 Fund 226, Special Projects Revenue: $ 675,000 Fund 371, TIF T4 Kmart/ Central Ave: $ 400,000 Fund 376, TIF A3,C7,C8 Scattered Site District: $ 190,000 Fund 420, CAP Improvement Development: $ 950,000 73 City of Columbia Heights EDA Letter City of Columbia Heights - Council Letter Page 2 The list below provides a starting point for the discussion tonight. Staff highly encourages the EDA commission members to provide feedback and propose changes to the following 2017 proposed projects, programs, and objectives: 2017 Proposed Projects, Programs and Objectives Develop and initiate a business retention and expansion program to assist the Columbia Heights business community. Land acquisition of residential properties located in commercial zoning districts along Central Avenue. (Supporting Map Attached) Land acquisition and initiate redevelopment of the Root Property located on the corner of 40th Avenue and University Avenue. Finalize the closing of the ACCAP property located at 4641-43 Polk Street NE. Demolish the structures located at 4201 Jefferson Street NE and 4641-43 Polk Street NE, and add both properties to the Single Family Home Lot Sales Program. Reacquire and add 4647 Polk Street to the Single Family Home Lot Sales Program. After the remaining lots sell (4641 Tyler Street NE, 4647 Tyler Street NE, 4641 Polk Street NE, 4647 Polk Street NE, and 4201 Jefferson Street NE) in the Single Family Home Lot Sales Program, discontinue the program until more lots are acquired. Determine a fund source and create a housing rehabilitation grant or low to no interest loan program for exterior remodels and/ or interior renovations. ATTACHMENTS: 1.Map of Single-Family Homes along Central Avenue (1 Page) 74 Single-Family Residential Properties- Central Avenue Zoning R-1 - Single Family Residential District R-2A - One and Two Family Residential District R-2B - Built as Duplexes R-3 - Multiple Family Residential District R-4 - Multiple Family Residential District MXD - Mixed Use District LB - Limited Business District CBD - Central Business District GB - General Business District I - Industrial District I-2 - Industrial District PO - Public and Open Space Right-of-Way City of Hilltop and Mpls Water Works 75